S&P cuts Journey Personal Care

S&P said it lowered its ratings on Journey Personal Care Holdings Ltd. and its $650 million senior secured term loan to B- from B. The loan’s recovery rating remains 3, indicating meaningful (50-70%; rounded estimate of 60%) recovery in default.

“The downgrade reflects our expectation that JPC's debt-to-EBITDA ratio will remain elevated over 7x in 2022. The company's EBITDA and credit metrics (on an S&P Global Ratings' adjusted basis) for last 12 months (LTM) to Sept. 30, 2021, were weaker than our previous expectations. Specifically, even though revenue remained stable, the company's EBITDA on S&P Global Ratings' adjusted basis for the year-to-date Sept. 30, 2021, period dropped significantly compared with same period last year and debt to EBITDA weakened to 7.5x on an LTM basis, which is a meaningful decline from our previous expectation of 5x-5.5x,” the agency said in a press release.

The outlook is stable.

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