Fitch ups, gives Oriflame notes BB-

Fitch Ratings said it upgraded Oriflame Investment Holding plc's long-term issuer default rating and senior secured rating to B+ from B. Fitch also assigned Oriflame's planned senior secured notes an expected rating of BB- with an RR3recovery rating.

“The IDR upgrade reflects significant deleveraging in 2020, despite the pandemic, and our expectation that leverage will reduce further in 2021 as sales volumes recover and EBITDA normalizes after unusually high staff bonuses in 2020. It is also supported by the company's leverage target of below 2.5x, which is fully aligned with a B+ rating. The rating is supported by Oriflame's strong market position in direct-selling beauty and diversified operations, partly offset by its exposure to foreign-exchange (FX) risks and emerging markets, which increases the volatility of revenue and profits,” the agency said in a press release.

The outlook is stable.

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