S&P downgrades Sally Beauty

S&P said it lowered its corporate credit rating on Sally Beauty Holdings Inc. to BB- from BB+.

The outlook is negative.

The agency also lowered the issue-level rating on the company's $850 million term loan B due 2024, consisting of a $300 million fixed-rate tranche and $550 million floating-rate tranche, to BB+ from BBB-.

The 1 recovery rating is unchanged and indicates an expectation for very high (90-100%; rounded estimate: 95%) recovery in the event of default.

In addition, S&P lowered its rating on the company’s senior unsecured notes to BB- from BB+. The 4 recovery rating is unchanged and indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery.

The agency said the downgrade reflects the company's weak performance and expectations that these trends will continue based on heightened competition, and its underinvestment in e-commerce and in-store initiatives.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.