FULLBEAUTY Brands, Inc. – Low Rating

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On May 8, 2017, S&P Global Ratings lowered its corporate credit rating on FULLBEAUTY Brands Holdings Corp. (FBB) to CCC+ from B-, its $820 million first-lien term loan to CCC+ from B- and its $345 million second-lien term loan to CCC- from CCC. “The downgrade reflects our expectation for continued weak operating performance across FBB’s core operating segments and its very high leverage, including debt to EBITDA of more than 9x. During 2016, FBB expanded its product offering to include a higher proportion of new, fashion oriented, and higher-priced products. Customer sensitivity to price increases contributed to a sales decline,” said credit analyst Fernanda Hernandez.

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