Moody's ups Revlon from Caa1

Moody's Investors Service today upgraded Revlon Consumer Products Corp.'s corporate family and probability-of-default ratings to B3 from Caa1 and speculative grade liquidity rating to SGL-3 from SGL-4.

The agency raised the $160 million senior secured asset-based revolving credit facility to Ba3 (LGD 2, 24%) from B1 (LGD 2, 12%), $840 million senior secured term loan facility to B1 (LGD2, 28%) from B3 (LGD3, 37%), and affirmed the Caa2 rating for its $387 million 9½% senior notes due 2011 to Caa2 (LGD5, 79%) from Caa2 (LGD4, 63%).

The outlook is positive.

Moody's said the upgrade reflects the company's sustained improvement in operating profit and cash flow, which have contributed to meaningful gains in profitability and credit metrics.

Revlon's B3 corporate family rating reflects the company's marked improvement in profitability and cash flow metrics, stabilized market share position for its well known core global brand franchises, the agency said, offset by its relatively weaker position in the highly competitive cosmetics and personal care category.

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