S&P: Revlon ratings unaffected by news

Standard & Poor's said Wednesday there would be no immediate change of the ratings or outlook on Revlon Consumer Products Corp. (CCC+/negative/--) following the announcement that the board of directors of Revlon Inc. has authorized management to explore financing alternatives.

The alternatives include the possible issuance of equity or debt securities for cash or in exchange for outstanding debt.

S&P said the ratings will be lowered to CC if the company announces an exchange offer for existing debt that extends maturities or offers bonds with a value below par on the existing obligations. Furthermore, ratings would be lowered to D upon completion of such an exchange offer, which would be viewed by S&P as tantamount to a default.

Ratings on the new debt will be assigned following S&P's evaluation of the impact on credit quality upon the announcement of a strategic plan or transaction. S&P said it views Revlon's current limited financial flexibility as a key rating concern as it continues to weaken, given the company's negative free cash flow.

Should the company succeed with a refinancing, it is expected that Revlon's debt balances would be reduced and liquidity position would improve.

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