Moody's rates Revlon loans Ba2, Ba3

Moody's Investors Service said it assigned a Ba2 (LGD1, 2%) rating to Revlon Consumer Products Corp.'s $140 million senior secured asset-based revolving credit facility due March 2014, assigned a Ba3 (LGD3, 31%) rating to its $800 million senior secured term loan facility due March 2017 and affirmed its corporate family and probability-of-default ratings at B2, $160 million senior secured asset-based revolving credit facility due 2012 and $815 million senior secured term loan facility at Ba3 (LGD2, 28%), $330 million 9¾% senior secured notes due 2015 at B3 (LGD5, 74%) and speculative-grade liquidity rating at SGL-2.

The outlook is stable.

The agency said the affirmation reflects the company's sustained operating and financial improvements despite the ongoing challenges of the macroeconomic environment as well as its ability to stabilize its Revlon brand market share position as a result of a series of successful new product introductions. Moody's recognizes that the proposed bank financing is an important step in Revlon's multi-year effort to improve its capital structure and liquidity.

The B2 corporate family rating reflects the company's global brand franchises, strong geographic and product diversification and significantly improved and sustained profitability and cash flow metrics, Moody's said.

Revlon's ratings remain somewhat constrained by the highly competitive nature of the cosmetics and personal care category in which it operates and the company's still relatively high adjusted leverage (5.8 times), the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.