Moody's upgrades the Bountiful

Moody's Investors Service said it upgraded Alphabet Holding Co., Inc.'s (the Bountiful Co.) corporate family rating to B2 from B3 and its probability of default rating to B2-PD from B3-PD.

The agency also raised the rating on the company's asset-based lending facility to Ba1 from Ba2, the company's first-lien term loan to B2 from B3, and the rating on the company's second-lien term loan to Caa1 from Caa2. The CFR, PDR and loan ratings were placed on review for further upgrade. The outlook was stable.

“The upgrade reflects Bountiful's good operating performance and Moody's expectation that the company's improving free cash flow will continue. Bountiful's focus on new product introductions combined with strong cost reduction initiatives and productivity improvements has yielded good operating earnings and operating cash flow. Further, a number of the company's immunity-based products, such as its vitamin C and vitamin D products, are benefitting from increased demand during the coronavirus pandemic reflecting consumers' focus on wellness,” Moody’s said in a press release.

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