S&P cuts Revlon loan, rates loan B+

Standard & Poor's said it affirmed its B+ corporate credit rating on Revlon Consumer Products Corp.

The outlook is stable.

At the same time, S&P lowered its issue-level rating on the company's senior secured bank facility due 2017 to B+ from BB- and revised the recovery rating to 3 from 2, indicating an expectation of meaningful (50% to 70%) recovery in the event of a payment default.

It also reflects the $700 million additional term debt on the company's existing bank term loan facility, which decreases the recovery prospects for the senior secured bank lenders given the higher debt balance.

S&P assigned a B+ rating to the $700 million incremental term debt, with a 3 recovery rating, indicating an expectation of meaningful (50% to 70%) recovery in the event of a payment default.

Additionally, thee affirmed its B issue-level rating on the company's senior unsecured debt due 2021. The recovery rating is 5, indicating an expectation for modest (10% to 30%) recovery in the event of a payment default.

"The ratings on Revlon reflect our view that the company's financial risk profile remains aggressive," S&P credit analyst Jacqueline Hui said in a news release. "Though the debt-financed transaction weakens Revlon's credit measures on a pro forma basis, we believe the company will deleverage to below 5x over the next 12 to 18 months."

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