Moody’s trims Rodan & Fields

Moody's Investors Service said it downgraded Rodan & Fields, LLC's corporate family rating to B2 from B1 and its probability of default rating to B2-PD from B1-PD.

Moody's also downgraded Rodan & Fields' first-lien senior secured revolving credit facility and term loan ratings to B2 from B1.

The outlook is stable.

“The downgrade reflects the company's weaker-than-expected operating performance, which was fueled by a significant decline in new enrollment of its independent sales consultants,” the agency said in a news release.

“The independent sales consultants are a significant driver of growth across the company's multi-level marketing business model, and therefore any material decline in their enrollment negatively impacts business performance.”

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