S&P downgrades Oriflame

S&P said it lowered its rating on Walnut Bidco plc (Oriflame) and its senior secured debt to B from B+.

The outlook is negative.

“We believe the Covid-19 pandemic will depress the group's sales volumes and EBITDA in 2020 due to the discretionary nature of most of its products, pushing adjusted leverage above 5x,” S&P said in a news release.

“In addition, the group is exposed to volatile foreign currency rates, which may further depress the group's topline and EBITDA, leading to pressure on interest coverage ratios.”

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