...- Specialty retailers across eurozone, including Kirk Beauty One GmbH, parent of German beauty retailer Douglas, are bracing for the impact of the COVID-19 pandemic and various governments' measures to minimize social interaction and contain the spread of the coronavirus. - While the extent and duration of COVID-19's effect on Kirk Beauty One's financial position are currently uncertain, we anticipate a meaningful decline in cash flow and earnings that could render the current capital structure unsustainable and increase refinancing risk. - We believe the decline in cash generation over the next few months will weaken the company's currently healthy liquidity position, increasing the importance of the state aid Kirk Beauty has applied for, if the market disruption persists for longer than we currently expect. - We are therefore lowering our long-term rating on Kirk Beauty One and its senior secured debt to '###+' from 'B-', and our ratings on the senior unsecured debt instruments to '###-'...
