S&P lowers Rodan & Fields

S&P said it cut ratings for Rodan & Fields LLC on the company’s continued weak results.

S&P lowered the rating for the company to B from B+ and the rating on the senior secured facility to B+ from BB-. The recovery rating of 2 is unchanged.

“We are lowering our forecast for the company's performance and now project that it will generate marginally positive cash flow for 2019, which compared with our previous expectation for cash flow of more than $30 million,” said S&P in a news release.

The outlook is negative.

The negative outlook mirrors the potential for S&P to lower the ratings in the next 12 months if performance doesn’t improve and the company doesn’t generate more than $15 million of cash flow, after required tax distributions, S&P said.

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