S&P upgrades Revlon

Standard & Poor's said it raised the corporate credit rating on Revlon Consumer Products Corp. to B+ from B and on the company's senior secured debt to BB- from B+. The recovery rating remains 2.

The agency also raised the issue-level rating on the company's 9¾% senior notes to B from B-.

The outlook is stable.

"We raised the ratings on Revlon Consumer Products Corp. to reflect the continued improvements in operating performance, credit metrics and its enhanced liquidity profile," S&P analyst Susan Ding said in a statement.

Ratings reflect the view the company has a vulnerable business risk profile due to its participation in the intensely competitive mass-market cosmetics industry and the company's narrow distribution focus in the United States, the agency said.

These risks are partially mitigated by the company's strong brand names and its positive operating momentum, S&P said.

Revlon's financial risk profile is highly leveraged, based on its relatively high leverage and weak cash flow measures, the agency noted.

For the 12 months ended September, lease- and pension-adjusted total debt-to-EBITDA ratio was about 5.1x, compared with leverage of about 6.0x a year ago. The company has maintained leverage below 5.5x since the December 2009 quarter, according to the agency.

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