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Following a forbearance agreement with its lenders and missed payment, Anastasia Beverly Hills’ parent company has been downgraded by Standard & Poor Global Ratings.
The credit rating agency announced on Tuesday that it moved Anastasia Holdings LLC’s rating from “CCC-” to “D” after the company missed its principal and interest payment due on that date. It entered into a forbearance agreement with lenders on July 25. The agency described the forbearance agreement and nonpayment as “tantamount to default” and “distressed.”
Under the agreement, lenders have agreed not to take action on the missed payment until Sep. 10.
“We are taking steps to align our capital structure with the underlying strength of our business and our resilient operational performance,” said a spokesperson for Anastasia Beverly Hills in a statement. The company is continuing to work with lenders “constructively and amicably,” according to the spokesperson, who added that the brand “continues to be well positioned for growth” with “healthy margins and strong market share.”
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Its last downgrade by S&P to CCC- occurred in October 2024, after it was reported by credit agency Moody’s that investor TPG Capital was looking to cash out. The report stated that when TPG took its stake in the company in 2018, it agreed it could redeem its equity for cash if the company did not IPO or sell within six years. S&P estimates that TPG currently owns a 37 percent stake.
Anastasia Beverly Hills is stocked at major retailers including Sephora and operates its Anastasia Brow Studio in Nordstrom locations. While the brand is best known for its full-glam looks, recent product launches have centered around “clean-girl” beauty, which has dominated the broader colour cosmetics category. Influencer tutorials of its HydraPrime SPF 50, Magic Touch Blush Trio and Smooth Blur Bronzer launched this summer emphasise natural, minimalist makeup.
Learn more:
How Anastasia Beverly Hills Lost Its Footing
The influencer-favourite brand seemed on rocket-like trajectory in the 2010s, culminating in a reported $3 billion valuation in 2018. But trends have shifted, sales have slid, debt has mounted and its main investor, the private equity firm TPG Capital, is ready to move on.
