S&P ups Jafra view to positive

Standard & Poor's said it revised its outlook on Jafra Cosmetics International Inc. to positive from stable and affirmed Jafra's B+ corporate credit and B- senior subordinated debt ratings.

S&P said the revised outlook reflects Jafra's improved debt leverage as a result of a $79 million equity contribution from its parent, Vorwerk & Co. KG, in early 2005, and stronger operating trends during the past two years. The ratings could be raised over the intermediate term if the company continues to maintain moderate debt leverage levels and stable operating performance.

According to S&P, the ratings on Jafra also reflect the company's exposure to foreign exchange risk, the intensely competitive cosmetics business, and risks of direct sales distribution.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.