Anastasia Beverly Hills loan downgraded amid grim revenue results

By Becky Bargh | 17-Jul-2019

The brand was founded in 2000 by Romanian-American billionaire Anastasia Soare

The debt racked up by beauty company Anastasia Beverly Hills has been downgraded by US credit rating agency Fitch Ratings, as cracks have emerged in the US$1.2tn leveraged loan market.

According to the rating agency, as said in Financial Times, disappointing revenues and declining sales raised concerns about the brand’s growth.

Anastasia Beverly Hills was founded by Romanian-American billionaire, Anastasia Soare in 2000, after she started working in a beauty salon in the 80s.

As a result, Fitch lowered its rating of the brand’s debt from double-B plus to single-B plus, a step down from the top rung high-yield universe.

Fitch said this “reflects concerns that management may be unable to reverse the current negative trajectory,” revealed the publication.

It added that this could “raise questions regarding the long-term health of the brand”.

Anastasia Beverly Hills loan downgraded amid grim revenue results

Its falling sales and revenue declines are a stark contrast to its 2017 results which saw rapid growth towards the end of the year with a number of celebrity endorsements, from A-listers including Naomi Campbell.

In 2018, TPG Capital showed interest in acquiring part of the company, and sold a minority stake with a US$650m laon.

Meanwhile the company was also found the have the most popular Instagram page among beauty brands at the beginning of 2019.

The Financial Times also reported the price of the beauty brand’s loan has tumbled from 95.7 cents on the dollar to 86.8 cents - the average leveraged US loan price is 97 cents on the dollar.

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