S&P affirms Pearl Holding III, view still negative

S&P said it affirmed its B long-term issuer credit rating on Pearl Holding III Ltd. and its B long-term issue rating on the company's outstanding senior secured notes.

The outlook remains negative.

“The affirmation reflects our expectation that Pearl's operational improvement initiatives in cost savings and new business development are likely to remain on track. We expect the company's operating efficiency and financial metrics to gradually improve with the completion of one-off restructuring processes by 2019,” S&P said in a news release.

“However, we view that the company is facing tough operating conditions due to volatile automotive and smartphone end-market demand amid an anticipated global economic slowdown in 2019. As such, we expect Pearl's adjusted gross debt leverage to remain high and discretionary cash flows to be minimal over the next 12 months.”

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