S&P upgrades Prestige Consumer

S&P said it raised its ratings for Prestige Consumer Healthcare Inc. and its senior unsecured notes to BB from BB-. The agency also boosted the senior secured term loan rating to BBB- from BB+ and withdrew its rating on Prestige Brands Inc.

“U.S.-based Prestige Consumer Healthcare Inc. has continued to outperform our expectations. The company's consistent profitability, strong cash flow generation, and term loan prepayment helped it reduce its S&P Global Ratings-adjusted leverage to 3.3x as of the 12 months ended June 30, 2023, and we expect continued strong performance will support further deleveraging to about 3x by the end of fiscal 2024,” S&P said in a press release.

The agency also noted the company recently said it is targeting company-defined net leverage of below 3x and estimates it will hit 3x by the second or third quarter of its fiscal 2024.

The outlook is stable.

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