In this paper, we enhance a recent algorithm for approximate spectral factorization of matrix functions, extending its capabilities to precisely factorize rational matrices when an exact lower-upper triangular factorization is available. This novel approach leverages a fundamental component of the improved algorithm for the precise design of rational paraunitary filter banks, allowing for the predetermined placement of zeros and poles. The introduced algorithm not only advances the state-of-the-art in spectral factorization but also opens new avenues for the tailored design of paraunitary filters with specific spectral properties, offering significant potential for applications in signal processing and beyond.