Moody's lowers Kirk Beauty view to negative

Moody's Investors Service said it changed the outlook on Kirk Beauty One GmbH to negative from stable and affirmed its B2 corporate family rating and B2-PD probability of default rating.

Moody's also said it affirmed the Caa1 rating assigned to the €335 million senior notes issued by Kirk Beauty One, along with the B1 rating assigned to the senior secured facilities borrowed by its subsidiaries.

Those facilities are comprised a €200 million revolving credit facility, €1.67 billion term loan B and €300 million senior secured notes.

The outlook change reflects an expectation that the company's leverage will remain higher than 6x in the next 12- to 18-months with some de-leveraging expected only in fiscal 2020, Moody's said.

The ratings are very weakly positioned because of the high leverage following debt-funded acquisitions completed this year, the agency explained, and the deterioration in the company's operating performance in fiscal 2018.

© 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.