S&P cuts Natura Cosmeticos

Standard & Poor’s said it lowered its global scale ratings on Natura Cosmeticos SA to BBB- from BBB and also affirmed the brAAA national scale corporate credit and issue-level ratings on the company.

S&P removed the ratings from CreditWatch negative. The outlook on both scales is negative.

The downgrade reflects weak economy and greater competition in Natura’s main market, Brazil, which have resulted in the company losing its market share. This, combined with higher taxation on its products since the beginning of 2015 and consumers' lower available income, have limited the company’s ability to increase prices, S&P said in a news release.

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