S&P downgrades H&H

S&P said it lowered its ratings on Health and Happiness (H&H) International Holdings Ltd. and its senior secured notes due in 2026 to BB from BB+.

H&H is expected to have higher debt levels into 2025. “We had expected H&H to cut leverage to close to 3x by the end of 2023. The company had been trending toward that ratio until the second half of 2023 but ended the year at 4.1x. This was mainly because of higher operating expenses and working capital needs,” S&P said in a press release.

The agency said it forecasts H&H’s adjusted debt-to-EBITDA ratio will stay above 3x for an additional 12-18 months from the end of 2023.

S&P also noted H&H’s $300 million of 5 5/8% notes are due in October.

The outlook is stable.

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