S&P: CB Poly loans BB-, CCC+

S&P said it affirmed the B corporate credit rating on Polyconcept Investments BV.

The agency also said it assigned a B corporate credit rating to the new parent company, CB Poly Investments LLC.

The issuer of the company's debt is Polyconcept North America Holdings Inc.

The agency said it considers CB Poly Investments and its operating subsidiaries as a group for ratings purposes.

The outlook is stable.

S&P also said it assigned a BB- rating to the company's proposed $88 million ABL due 2021 and 1 recovery rating, indicating 90% to 100% expected default recovery.

The agency also said it assigned a B rating to the company's proposed $435 million senior secured first-lien term loan due 2023 and 3 recovery rating, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating to the company's proposed $175 million senior secured second-lien term loan due in 7.5 years and 6 recovery rating, indicating 0 to 10% expected default recovery.

Despite the increase in funded debt to $610 million from $390 million, overall credit protection measures are expected to improve because the company will no longer have more than $640 million preferred stock in its capital structure, which was previously treated as 100% debt, the agency explained.

The ratings also consider the company's narrow business focus in the highly competitive and fragmented promotional products industry, vulnerability to reduced discretionary spending on promotional products in an economic downturn and substantial debt obligations, S&P said.

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