S&P revises pH Beauty view to negative

S&P said it revised the outlook for pH Beauty Holdings I Inc. to negative from positive, citing retail store closures and reduced consumer spending.

“The negative outlook reflects our expectation for a deterioration in sales and EBITDA, resulting in weak interest coverage and covenant pressure. We believe a global recession and a decline in consumer spending because of the Covid-19 pandemic will negatively affect pH Beauty’s sales and profitability,” the agency said in a press release.

“One of the company’s largest retail customers, Ulta Beauty, closed its stores temporarily to help abide by social distancing guidelines intended to slow the spread of the virus,” S&P said.

The agency affirmed pH Beauty’s B- rating.

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