Anastasia Beverly Hills missed a paying interest payment on its $650 million term loan. This downgrades the company to a D from a CCC- credit rating and gives it a negative outlook from Standard & Poor’s and Moody’s Investors Service.

The term loan, a constituent of the Morningstar LSTA US Leveraged Loan Index, was also downgraded to D, from CCC- credit score. 

According to reports, term loan lenders inked a forbearance agreement with Anastasia on July 25, in advance of the loan’s August 11 maturity. S&P noted the agreement expires September 10.

A spokesperson for Anastasia Beverly Hills commented,

“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 September 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.”

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.

A consumer analyst at S&P, Katherine Heng, said that Anastasia Beverly Hills was already downgraded twice in 2024 because of its credit facility expiration and the loan reaching maturity. She said S&P would take another look at the rating after the September 10 deadline.

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