S&P rates MD Beauty loans B, CCC+

Standard & Poor's said it assigned a B corporate credit rating to MD Beauty Inc. In addition, a B rating and 4 recovery rating were assigned to MD Beauty's planned $165 million first-priority lien bank facility.

A CCC+ rating and 5 recovery rating were also assigned to MD Beauty's planned $57 million second-priority lien bank facility.

Proceeds from the $222 million of total bank facilities will be used to pay a dividend to all existing shareholders, including Berkshire Partners and JH Partners, and to refinance the company's existing debt.

S&P said the ratings on MD Beauty reflect its narrow product focus and participation in the highly competitive and fragmented cosmetics industry, relatively small sales and earnings base and the risks associated with expanding and upgrading its operating platforms.

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