Latest news with #Standard & Poor's
Yahoo
2 days 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
Yahoo
5 days ago
- Business
- Yahoo
BRF S.A.'s (NYSE:BRFS) Global Scale Rating Gets Upgraded From 'BB' to 'BB+' by Standard & Poor's
BRF S.A. (NYSE:BRFS) is one of the best undervalued defensive stocks to buy according to analysts. On August 7, BRF S.A. (NYSE:BRFS) announced that Standard & Poor's, a credit rating agency, upgraded the company's global scale rating from 'BB' to 'BB+', with the outlook transitioning from stable to positive. A bird's-eye view of a poultry farm, its white and black feathered chickens sprawled across the farm. BRF S.A. (NYSE:BRFS) reported R$15.512 billion in net revenue in fiscal Q1 2025 compared to R$13.378 billion in fiscal Q1 2024, reflecting an increase of 16%. Gross profit for the quarter reached R$4.053 billion compared to R$3.224 billion in the same quarter last year. The company also reported R$1.2 billion in net income, double that of the same period last year. Adjusted EBITDA rose 30% to R$2.8 billion, marking a record for Q1. BRF S.A. (NYSE:BRFS) produces and distributes fresh and frozen protein foods. Its operations are divided into the Brazil, International, and Other segments. The company's offerings include frozen processed meats, specialty meats, prepared entrees, sliced products, and even products like cream cheese, butter, margarine, sweet specialties, and more. While we acknowledge the potential of BRFS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
28-07-2025
- Business
- Globe and Mail
CPS Announces $418.33 Million Senior Subordinate Asset-Backed Securitization
LAS VEGAS, Nevada, July 28, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ('CPS' or the 'Company') announced the closing of its third term securitization in 2025 on Monday July 28, 2025. The transaction is CPS's 56th senior subordinate securitization since the beginning of 2011 and the 39th consecutive securitization to receive a triple 'A' rating from at least two rating agencies on the senior class of notes. In the transaction, qualified institutional buyers purchased $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2025-C, consist of five classes. Ratings of the notes were provided by Standard & Poor's and DBRS Morningstar, and were based on the structure of the transaction, the historical performance of similar receivables and CPS's experience as a servicer. The weighted average coupon on the notes is approximately 5.43%. The 2025-C transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.00% of the original receivable pool balance, or 21.00% of the then outstanding pool balance. The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All such securities having been sold, this announcement of their sale appears as a matter of record only. About Consumer Portfolio Services, Inc. Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
