S&P trims Holland & Barrett parent

S&P said it downgraded Holland & Barrett parent L1R HB Finance Ltd. and its senior credit facilities to CCC+ from B-. The recovery rating remains 4 with a rounded estimate of 45%.

“We anticipate a 5%-15% revenue decline in FY2020, with related profitability shortfall delaying deleveraging compared with our previous base case such that S&P Global Ratings-adjusted leverage will likely exceed 7x by end-FY2021; and free operating cash flow (FOCF) after leases will stay negative, raising our concerns of long-term sustainability of H&B's capital structure,” S&P said in a press release.

The outlook is stable.

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