Fitch cuts Oriflame

Fitch Ratings said it downgraded Oriflame Investment Holding plc's long-term issuer default rating and senior secured rating to B- from B. The recovery rating on the senior secured debt remains at RR4.

“The downgrade reflects our expectation that Oriflame's leverage in 2023-2024 will remain considerably higher than previously estimated after a material increase in 2022. The sharply increased financial risk reflects significant challenges from weak revenue trends, operating margin pressure and weaker free cash flow (FCF) generation, all of which are no longer consistent with a B IDR,” Fitch said in a press release.

The outlook is negative.

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