S&P rates Pearl Holding III notes B

S&P said it assigned its preliminary B corporate credit rating to Pearl Holding III Ltd., a Hong Kong headquartered precision-engineered plastic components manufacturer. The outlook is stable.

At the same time, S&P assigned a preliminary B issue rating to the company's proposed senior secured notes due 2022.

Pearl will use the notes proceeds to refinance a bridge loan for the acquisition of Fischer Tech Ltd.

“The preliminary rating reflects Pearl's small market share in the highly competitive, volatile, and fragmented plastic injection molding and component market, and the company's high customer concentration risk. Additionally, we believe that Pearl's financial policy will be aggressive because it is owned by Platinum Equity Partners, a private equity firm,” S&P said in a news release.

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