S&P lowers Oriflame

S&P said it lowered its ratings for Oriflame Investment Holding plc and its senior secured notes maturing in 2026 to B from B+. The 3 recovery rating is unchanged, indicating recovery prospects of 55%.

“In our view, Oriflame's creditworthiness will deteriorate due to the outbreak of conflict in Russia and Ukraine. Oriflame is a manufacturer and direct seller of beauty and wellness products. The military conflict is creating business disruptions and we now expect a material impact on the company's top-line growth, profitability and credit metrics,” S&P said in a press release.

The Commonwealth of Independent States contributed about 28% of Oriflame’s sales for 2021, the agency noted. Russia provided about 55% of total CIS sales, while Belarus and Ukraine contributed about 7% each.

The outlook is stable.

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