S&P lifts Herbalife

Standard & Poor's said it raised its ratings on Herbalife International Inc., including its corporate credit rating to BB+ from BB.

S&P said it also raised its ratings on Herbalife's parent, Herbalife Ltd., including the corporate credit rating to BB+ from BB.

The outlook is stable.

S&P said that this rating action is based on Herbalife's strong operating performance for the past two years as well as a significant strengthening of its credit measures.

S&P added that the speculative-grade ratings on Herbalife reflect the risks associated with the company's network marketing business model, the intensely competitive and fragmented nature of the weight management and nutritional supplements industries and the high level of competition in the network marketing business, as well as risks of product liability and negative publicity.

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