Latest news with #Moody's Investors Service
Yahoo
13 hours ago
- Business
- Yahoo
Anastasia Beverly Hills' Missed Loan Payment Hits Its Credit Rating
Anastasia Beverly Hills missed a term loan payment on Monday as it seeks to realign its capital structure and paid the price with downgrades to its credit rating from both Standard & Poor's and Moody's Investors Service. S&P cut the makeup company's ratings to a 'D' from a 'CCC-minus' on Monday, citing the missed principal and interest payment on its $650 million term loan. Anastasia Beverly Hills entered into a forbearance agreement with lenders on July 25 that gave the company some breathing room, but the rating agency still viewed the situation unfavorably. More from WWD Inside Beauty's Innovative New Retail Formats Crocs Beats Q2 Expectations, but Remains Cautious on Q3 All the Beauty Retail Expansions of 2025 'Under the forbearance agreement, the term loan lenders agreed to not exercise certain remedies relating to the nonpayment until Sept. 10, 2025,' S&P Global said. 'We view the transaction as distressed and do not have information on sufficient compensation to lenders for the deferral. In our view, this represents a default on the term loan because Anastasia did not meet its contractual obligation to pay principal and interest in a timely manner.' Katherine Heng, a consumer analyst at S&P, said that the company had been downgraded twice in 2024 due to its credit facility expiration and the loan reaching maturity. 'We highlighted a higher risk of default back then, and then on Monday we lowered our rating to default,' Heng said. 'The transaction itself is distressed.' She said S&P would take another look at the rating after the Sept. 10 deadline on the forbearance. Moody's took similar action on Tuesday, downgrading the firm's corporate family rating to 'Ca' from 'Caa3,' and the probability of default rating 'D-PD' to 'Caa3-PD.' The downgrade from Moody's said the rating has a negative outlook. 'The ratings also incorporate the high likelihood of a debt restructuring or other form of a distressed exchange given the company's very high leverage and ongoing cash flow deficits,' Moody's said. 'ABH's scale remains modest, with revenue below $300 million, and Moody's adjusted debt-to-EBITDA of 11.9x for the 12 months ending March 31, 2025. The company generated negative cash flow and faces intense competition within the beauty industry.' At the time of its investment from TPG Capital in 2018 — which was said to value the business at as much as $3 billion — the company was believed to have $200 million in earnings before interest, taxes, depreciation and amortization on $340 million in sales. As of March 31, Anastasia Beverly Hills had only $40 million in cash available after its revolving credit facility expired in May, according to Moody's. An Anastasia Beverly Hills spokesperson told WWD: 'We are taking steps to align our capital structure with the underlying strength of our business and our resilient operational performance, including entering into a forbearance agreement through Sept. 10, 2025 with our lenders, who we are continuing to work with constructively and amicably. ABH continues to be well positioned for growth, driven by our ongoing innovation, loyal customers, healthy margins and strong market share for our beloved products.' Best of WWD The Best Makeup in Grammys History: Kim Kardashian, Miley Cyrus, Cher and More Iconic Red Carpet Looks A Look Back at Grammys Best Makeup on the Red Carpet: Beyonce, Dua Lipa and More Photos The Best Eyeliner Brand According to Stacey Bendet, Queen of the Black Smokey Eye
Globe and Mail
3 days ago
- Business
- Globe and Mail
Will Goldman's Strong Liquidity Aid Its Capital Distribution Strategy?
The Goldman Sachs Group, Inc. GS enjoys a strong balance sheet position. As of June 30, 2025, cash and cash equivalents were $153 billion. As of the same date, total unsecured debt (comprising long-term and short-term borrowings) was $349 billion. Out of this, only $69 billion were near-term borrowings. Moreover, the company maintains investment-grade long-term debt ratings of A/A2/BBB+, and a stable outlook from Fitch Ratings, Moody's Investors Service and Standard & Poor's, respectively. Thus, the company's decent cash levels and solid credit profile indicate that it will likely be able to continue to meet debt obligations even during economic slowdowns. Given strong liquidity, Goldman's capital distribution activities have been impressive over the years. Post-clearing the Federal Reserve's 2025 stress test, the company raised its dividend 33.3% to $4 per share. In the past five years, the company has raised its dividends five times, with an annualized dividend growth rate of 22.04%. It currently sits at a payout ratio of 26%. The company also has a share repurchase plan in place. In the first quarter of 2025, the board approved a share repurchase program of up to $40 billion of common stock. In February 2023, it announced a share repurchase program, authorizing repurchases of up to $30 billion of common stock with no expiration date. At the end of the second quarter, Goldman had $40.6 billion worth of shares available under authorization. How GS Competes With JPM & MS in Terms of Liquidity Position JPMorgan JPM has a decent balance sheet position. As of June 30, 2025, JPM had a total debt of $485.1 billion (the majority of this is long-term in nature). The company's cash and due from banks and deposits with banks were $420.3 billion on the same date. Hence, JPM continues to reward shareholders handsomely. In March 2025, the company raised its quarterly dividend 12% to $1.40 per share. In the last five years, JPMorgan hiked dividends five times, with an annualized growth rate of 7.9%. JPMorgan also authorized a share repurchase program worth $50 billion (effective from July 1, 2025). Morgan Stanley MS had a long-term debt of $320.1 billion, with only $23.8 billion expected to mature over the next 12 months. The company's average liquidity resources were $363.4 billion as of June 30, 2025. Given its solid liquidity position, Morgan Stanley rewards shareholders handsomely. Post clearing the 2025 Fed stress test, MS announced an 8% hike in the quarterly dividend to $1.00 per share and reauthorized a multi-year share repurchase program of up to $20 billion (no expiration date). Morgan Stanley has increased its dividend five times in the last five years, with an annualized growth rate of 22.8%. Goldman's Price Performance, Valuation & Estimates Shares of GS have gained 26.8% year to date compared with the industry 's growth of 22.2%. Image Source: Zacks Investment Research From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 14.45X, above the industry's average of 14.39X. Price-to-Earnings F12M Image Source: Zacks Investment Research The Zacks Consensus Estimate for GS's 2025 and 2026 earnings implies year-over-year increases of 12.6% and 14.9%, respectively. Likewise, the Zacks Consensus Estimate for GS's 2025 and 2026 sales implies year-over-year rallies of 6.3% and 6.5%, respectively. The estimates for both years have been revised upward over the past 30 days. Estimates Revision Trend Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report
