Friday 29 Mar 2024
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KUALA LUMPUR (Aug 7): Shares in Malaysia Steel Works (KL) Bhd (Masteel) fell 2.2% this morning after Malaysian Rating Corp Bhd (MARC) said the firm's standalone credit profile remains vulnerable to fluctuations in steel price, fluctuating cost of raw materials and increased competitive pressures in the Malaysian market.

At 10.45am, Masteel's share price was down 1 sen at 44 sen for a market capitalisation of RM187.98 million.

MARC said given Masteel's relatively modest market position in the production of steel billets and steel bars, which are mainly for local consumption, these factors have weighed on its profitability margins.

Nonetheless, the rating agency has affirmed its AAA IS(fg) rating on Masteel's RM130 million Sukuk Ijarah programme, with a stable outlook.

MARC said the affirmed rating and outlook are based on the unconditional and irrevocable financial guarantee insurance provided by Danajamin Nasional Bhd.

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