S&P downgrades Elizabeth Arden

Standard & Poor’s said it lowered the corporate credit rating on Elizabeth Arden Inc. to CCC+ from B.

The outlook is negative.

The agency also said it lowered the rating on the company’s senior unsecured notes due 2021 to CCC from B and revised the recovery rating on the debt to 5 from 4.

The 5 recovery rating indicates 10% to 30% expected default recovery.

The ratings reflect a belief that Elizabeth Arden’s capital structure is unsustainable without a marked improvement in profitability, S&P said.

Its liquidity position is expected to deteriorate over the next year, the agency said.

Although the company has made some progress with its transformation programs aimed at repositioning brands and improving cost structure, S&P said it believes progress will be slow.

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