S&P cuts Juice Plus

S&P said it downgraded the issuer credit rating of NSA International LLC (Juice Plus) to CCC from B-. The agency also lowered its issue-level rating on the company's senior secured credit facility to CCC from B. S&P revised the recovery rating to 3 from 2, indicating expectations for meaningful (50% - 70%, rounded estimate 65%) recovery in the event of default.

“The downgrade reflects our expectation that operating performance will continue to deteriorate in 2020, resulting in declining EBITDA interest coverage and a potential for financial covenant violation absent relief from its lenders. Juice Plus' net sales and EBITDA were both down by double-digit percentages over the 12 months ended Oct. 31, 2019, primarily driven by continued challenges and softness across U.S. and Europe, leading to declining distributor and customer base,” said S&P in a press release.

The outlook is negative.

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