S&P cuts Revlon

S&P said it dropped its ratings on Revlon Inc. and the company’s 5¾% senior notes to SD and D from CC and C, respectively.

“The downgrade reflects Revlon's announcement that it completed the exchange offer for its 5¾% senior notes due in 2021,” the agency said in a press release.

S&P said it considers the transaction to be a distressed exchange and equivalent to default because the noteholders received less than they were originally promised.

“We also incorporate the company's weak operating performance, negative cash flow generation and near-term debt maturities,” the agency said.

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