RAM Ratings Reaffirms AA3/Stable Rating of Press Metal’s USD 1.2 Billion IMTN Programme

RAM Rating Services (RAM Ratings) has reaffirmed the AA3/Stable rating of Malaysia-based Press Metal Aluminium Holdings’ (Press Metal or the Group) MYR 5 billion (USD 1.2 billion) Islamic Medium-Term Notes (IMTN) Programme (2019/2049).

Ratings Rationale

According to RAM Ratings, the rating reflects Press Metal’s position as Southeast Asia’s largest primary aluminium producer, superior cost structure, as well as strong cash flow and debt servicing ability. However, the Group’s large debt load and unpredictability of the aluminium industry are moderating factors of the rating. RAM Ratings has taken into consideration Press Metal’s ability to deleverage quickly and boost its credit metrics in the near term, given its larger...