Moody's ups Revlon to SGL-3, view to stable

Moody's Investors Service said it affirmed Revlon Consumer Products Corp.'s long-term ratings, upgraded its speculative grade liquidity rating to SGL-3 and revised the outlook to stable from negative.

These rating actions reflect Moody's view that Revlon's new strategic initiatives should provide good growth prospects and are relatively conservatively financed given a balanced increase in both debt and equity.

Ratings affirmed include the corporate family rating at B3; the $160 million senior secured revolving credit facility due 2009 at B2; the senior secured term loan facility due 2010 at B3; the $310 million senior notes due 2011 at Caa2; and the $327 million 8.625% senior subordinated notes due 2008 at Caa3.

The company has announced that proceeds from $75 million of incremental debt, plus a $75 million increase in Revlon, Inc.'s committed equity offering by March 31, 2006 (including an increase in the back-stop agreement with MacAndrews & Forbes, will be used to support Revlon's announced relaunching of its Almay product line and the introduction of a full range of products targeted at older women.

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