S&P changes Pearl Holding view

S&P said it revised its outlook on Pearl Holding III Ltd. to negative from stable.

At the same time, the agency affirmed the B long-term issuer credit rating and affirmed the B long-term issue rating on the company's outstanding senior secured notes.

S&P said it revised the outlook to reflect Pearl's increasing adjusted gross debt leverage following the company's weak operating performance in the first quarter of 2018.

“We estimate that Pearl's adjusted gross debt leverage (inclusive of severance payments that should cease after 2018) increased to 5.1x for the 12 months ended March 31, 2018, up from our adjusted pro forma gross debt leverage of 4.6x for 2017,” the agency said in a news release.

“This is after the company's revenue and reported EBITDA before pro forma net run-rate savings fell by 1% and 30% year-over-year, respectively, in the quarter ended March 31, 2018.”

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