Moody’s trims Rodan + Fields

Moody’s Investors Service said it downgraded Rodan + Fields, LLC’s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD. Moody’s also downgraded Rodan + Fields’ first-lien senior secured revolving credit facility and term loan ratings to B3 from B2.

“The downgrade reflects the company’s continued underperformance with sales declining 26% in the third quarter of 2019, which was fueled by a significant decline in new enrollment of its independent sales consultants. Independent sales consultants are a significant driver of growth across the company’s multi-level marketing business model, and the decline in enrollment negatively impacted business performance,” said Moody’s in a press release.

The ratings remain on review for downgrade reflecting Moody’s ongoing concern over Rodan + Field’s ability to stem revenue declines in the highly competitive and rapidly changing prestige skin care market.

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