S&P rates Press Metal notes BB-

S&P said it assigned a BB- long-term corporate credit rating to Press Metal Aluminium Holdings Bhd.

The agency also said it assigned a BB- issue rating to $400 million in senior unsecured notes issued by Press Metal (Labuan) Ltd. PMB.

The outlook is positive.

The ratings reflect the company's modest production and scale as an aluminum smelter and extruder, its single-asset and single-metal exposure to aluminum and a limited record of operations at larger production levels, S&P said.

The company also has debt-funded its capacity expansion, the agency said.

Its cash flow adequacy ratios will remain sensitive to fluctuations in aluminum prices, S&P added.

PMB's sound cost position and limited reinvestment needs in the operations support its debt reduction potential through 2019 and mitigates these constraints, the agency said.

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