Moody's rates Revlon loan Ba3

Moody's Investors Service said it affirmed Revlon Consumer Products Corp.'s corporate family rating and probability of default rating at B1, $140 million senior secured asset based revolving credit facility due March 2014 at Ba1 (LGD 1, 1%), $782 million senior secured term loan facility due March 2015 at Ba3 (LGD 3, 30%), $330 million of 9¾% senior secured notes due November 2015 at B2 (LGD 5, 72%) and speculative-grade liquidity rating at SGL-2.

Moody's also assigned a Ba3 (LGD 3, 30%) rating to the company's proposed $800 million senior secured term loan facility.

The outlook is stable.

Proceeds will be used to refinance amount outstanding under its existing term loan facility.

Revlon's ratings reflect the company's global brand franchises, strong geographic and product diversification for a number of well known brands in color cosmetics, hair color and fragrances, and sustained strong profitability and cash flow metrics, the agency said.

Revlon's ratings are constrained by its still relatively high adjusted leverage and limited scale in the highly competitive cosmetics category characterized by deep-pocketed, large competitors, the agency added.

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