Moody's affirms MD Beauty

Moody's Investors Service said it has affirmed the B2 corporate family rating of MD Beauty, Inc., the company's B1 first-lien term loan facilities and the B3 second-lien facility following the company's launch of $175 million in add-on term loan facilities that will partially fund a distribution to shareholders.

The outlook remains stable.

Despite the substantial increase in debt and the rapid re-leveraging of recent earnings gains, the ratings reflect the company's strong operating momentum, its improved scale, brand identity and market position along with its improving managerial and operational resources, the agency said.

Over the coming year, Moody's said it does not anticipate any rating changes; however, Moody's could consider a positive outlook change if management successfully builds upon the recent operational performance to a degree that allows for rapid de-leveraging.

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