Moody's downgrades Juice Plus

Moody's Investors Service said it trimmed the first-lien senior secured revolver and term loan ratings of JP Intermediate B, LLC (the Juice Plus Co.) to B3 from B2 and the corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD.

“The rating downgrades reflect Moody's expectation for debt to EBITDA (Moody's adjusted) to remain elevated above 10x in fiscal year 2023 given inflationary cost pressures and high distributor churn, which factors are adversely impacting operating performance. Juice Plus has experienced double digit sales declines in its fiscal year ending April 2022, reflecting declines in sales force and volumes,” the agency said in a press release.

Moody’s noted the sales force is a major driver of revenue and fewer distributors translates into weaker performance.

The outlook is negative.

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