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S&P lifts Elizabeth Arden
Standard & Poor's said it raised its corporate credit rating on Elizabeth Arden Inc. to BB- from B+ and its senior subordinated debt to B from B-.
The outlook is stable.
The upgrade reflects the company's key credit measures, according to the agency. After the company boosted debt levels in 2006 to fund recent acquisitions, it cut incremental borrowing during the fiscal year, the agency said. S&P said it estimates the company's total debt-to-EBITDA ratio at about 3.5 times for fiscal 2007.
The ratings on Elizabeth Arden reflect the company's concentration in the highly competitive fragrance category, the seasonal nature of its core businesses, its weak operating margins and aggressive financial risk profile, the agency said.
Partly offsetting these factors are the company's brand portfolio, solid market position in fragrance and its diverse channels of distribution, S&P said.
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