Moody's upgrades Revlon, rates notes B1

Moody's Investors Service said it upgraded Revlon Consumer Products Corp.'s corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD, $800 million senior secured term loan facility due November 2017 to Ba2 (LGD 2, 26%) from Ba3 (LGD 3, 30%) and speculative grade liquidity rating to SGL-1 from SGL-2. The agency also assigned a B1 (LGD 5, 80%) rating to Revlon's proposed $400 million senior notes due 2021. The outlook is stable.

The agency said the upgrade reflects Revlon's track record of strong positive free cash flow, sustained profitability and solid organic growth over the last several years. Moody's expects Revlon to further deleverage over the next 12 to 18 months and leverage to decline and be sustained below 4.5 times.

Revlon's ratings reflect the company's global brand franchises, strong geographic and product diversification and sustained strong profitability and consistent free cash flow generation, the agency said.

Revlon's ratings are constrained by its limited scale in the highly competitive cosmetics category characterized by deep-pocketed, global competitors, Moody's added.

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