S&P rates FCI Asia loans BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating and axBB+ Asean regional scale rating to FCI Asia Pte. Ltd.

S&P also said it assigned a BB- long-term issue rating to FCI Asia's proposed $30 million senior secured revolving credit facility and a $300 million senior secured term loan that will be issued by Fidji Luxembourg (BC4) Sarl, an indirect holding company of FCI Asia.

FCI Asia, together with its two Luxemburg holding companies and some operating subsidiaries, will guarantee the term loan, the agency said.

The proceeds will be used to repay the company's financial sponsor. The rating on the term loan is subject to a review of the final issuance documentation.

The ratings reflect the company's small scale, S&P said, and limited business diversity in the global connector industry, which has high competition and significant risks from technological development.

The ratings also consider Bain Capital's ownership of FCI Asia as a financial sponsor in the financial risk assessment, said Katsuyuki Nakai, an S&P analyst.

Positive rating factors include the company's good niche position in the high-speed and power-connector segments, Nakai said.

Its small size and limited business diversity constrain its competitive position, the analyst added.

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