S&P puts Elizabeth Arden on watch

Standard & Poor's said it placed its BB- corporate credit rating for Elizabeth Arden Inc. and all the issue-level ratings for the company on CreditWatch with negative implications.

The CreditWatch placement follows Elizabeth Arden's downward earnings revision for the June quarter primarily due to continued weakness in its international business, which includes its higher-margined travel retail and international distributor businesses.

The agency said that as a result of the weaker operating performance, it expects credit metrics will face pressures and that the company will not be able to maintain its leverage in the 4 times area in the near term.

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