S&P cuts Elizabeth Arden, notes to B

Standard & Poor's said it lowered its corporate credit rating on Elizabeth Arden Inc. to B from B+.

The outlook is negative.

At the same time, the agency lowered its issue-level rating on the company's senior unsecured notes due 2021 to B from B+ and revised the recovery rating to 4 from 3. The 4 recovery rating indicates an expectation for average (30% to 50%; upper half of the range) recovery in the event of payment default.

"The downgrade reflects Elizabeth Arden's weak credit measures due to its poor operating performance, and our expectation that its recovery will be slow and uneven, given the over-saturation of celebrity brand fragrances and intense competition in the cosmetics industry," S&P credit analyst Peter Deluca said in a news release.

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