S&P: Revlon outlook negative

Standard & Poor's said it revised its outlook on Revlon Consumer Products Corp. to developing from negative, following the announcement of its proposed $170 million senior subordinated term loan (unrated) from MacAndrews & Forbes, Revlon's majority shareholder.

The agency said that existing ratings on Revlon were affirmed, including its CCC+ corporate credit rating.

The proposed $170 million senior subordinated 18-month term loan from MacAndrews matures in August 2009 and net proceeds will be used to refinance the outstanding $167.4 million 8.625% senior subordinated notes due in February 2008, S&P added.

The agency said that the outlook revision reflects Revlon's substantially reduced near-term refinancing risk as a result of the pending transaction while the ratings on Revlon reflect the company's participation in the highly competitive mass-market cosmetics industry, its highly leveraged capital structure and its historically inconsistent operating performance.

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