Moody's: Revlon outlook negative

Moody's Investors Service said it has taken several actions related to Revlon Consumer Products Corp. following the cancellation of its proposed debt refinancing.

Among the actions, 1) recently assigned senior secured and senior unsecured debt ratings of B2 and Caa1, respectively, have been withdrawn; 2) existing debt ratings, including the B3 senior implied rating, have been affirmed; 3) the speculative grade liquidity rating of SGL-4 has been confirmed; and 4) the outlook has been revised to negative from stable.

Moody's said the revision of the outlook to negative reflects significant concerns regarding Revlon's ability to maintain current rating levels following the recent cancellation of its proposed debt refinancing and the absence of a near-term improvement in its liquidity profile.

In addition to the material debt reduction offered by Revlon's $800 million debt-for-equity exchange and the company's improved operating performance, Moody's upgrade of Revlon's ratings on April 27 had anticipated important debt maturity extensions and cash interest savings from the now cancelled debt refinancing.

Moody's affirmed the senior implied rating at B3, the $311.9 million senior secured credit facilities due 2005 at B2, the $363.0 million 12% senior secured notes due 2005 at B2, the $75.5 million 9.0% senior notes due 2006 at Caa1, the $116.2 million 8.125% senior notes due 2006 at Caa1, the $327.1 million 8.625% senior subordinated notes due 2008 at Caa2, the senior unsecured issuer rating at Caa1, and the speculative grade liquidity rating at SGL-4.

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