Moody's upgrades Revlon

Moody's Investors Service said it upgraded Revlon Consumer Products Corp.'s corporate family and probability of default ratings to B1 from B2.

Moody's also said it upgraded the company's $140 million asset-backed revolving credit facility to Ba1 from Ba2 and its $330 million senior secured notes to B2 from B3.

Revlon's $800 million secured term loan facility rating of Ba3 and speculative grade liquidity rating of SGL-2 both were affirmed.

The outlook is stable.

The upgrade reflects the company's ability to sustain operating and financial momentum despite the ongoing challenges of the macroeconomic environment and intensified competitive environment, Moody's said.

Revlon's credit metrics continue to improve modestly, driven by strong profitability and cash flow generation with further gains expected in fiscal 2011, the agency said.

The ratings are constrained by the company's still relatively high adjusted leverage and limited scale in the highly competitive cosmetics category, characterized by deep-pocketed, large competitors, Moody's said.

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