S&P lowers Anastasia view to negative

S&P said it revised the outlook on Anastasia Parent, LLC and subsidiary Anastasia Holdings LLC (Anastasia Beverly Hills) to negative from stable.

The agency also affirmed all of its ratings, including its B issuer credit rating.

Anastasia has underperformed in recent quarters as the overall growth in North American prestige color cosmetics market decelerated in the 2018, S&P said.

This has resulted in weaker sales, margin erosion and deteriorating credit metrics, the agency said.

S&P said it expects the company will continue to face topline and margin pressures during 2019 as weak sales combined with necessary investments in the company's infrastructure will put pressure on its credit metrics and cash flow.

The negative outlook reflects the risk that the company will fail to stabilize its declining sales and margins and adjusted leverage could be sustained at higher than 10x, the agency said.

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