...- A sharp decline in revenue at Rodan & Fields LLC (R&F) in the second half of 2018 was fundamentally different from our initial expectations for the company to continue to grow at a fast pace. We now expect the company's performance will remain volatile at least through 2019 as it works to stabilize declining sales. As a result, we expect leverage to peak in the mid-3x area in 2019 as compared to our initial expectation for the company to maintain leverage around 2x. - We are lowering our issuer credit rating on Rodan & Fields to 'B+' from '##-'. At the same time, we are lowering the issue-level rating on the company's senior secured credit facility to '##-' from '##'. The recovery rating is unchanged at '2'. - The stable outlook reflects our view that the company's performance should stabilize by the end of the year, with sequential improvement in the second half, resulting in leverage in the low-3x area at the end of 2019. This will occur if the company's turnaround initiatives are successful...
