Moody's rates Revlon loans B1, B3

Moody's Investors Service said it assigned a provisional B1 rating with a loss-given-default assessment of LGD2 (11%) to Revlon Consumer Products Corp.'s $160 million senior secured asset-based revolving credit facility due 2012 and a provisional B3 rating with a loss-given-default assessment of LGD3 (36%) to the company's new $840 million senior secured term loan.

The Caa1 corporate family and probability-of-default ratings, SGL-4 speculative grade liquidity rating, B1 $160 million senior secured asset-based revolving credit facility due 2009 (LGD2, 11%), B3 $800 million senior secured term loan facility due 2010 (LGD3, 35%), Caa2 $387 million 9½% senior notes due 2011 (LGD 4, 61%) and Caa3 $217 million 8 5/8% senior subordinated notes due 2008 (LGD 6, 93%) were affirmed.

The outlook remains negative.

The agency said that while it recognizes the benefits provided by the new financings in relation to additional liquidity, term extension (bank facilities both mature in January 2012), interest savings and greater financial and covenant flexibility afforded by proposed amendment and refinancing, Revlon's long-term ratings continue to reflect the ongoing risk of additional debt restructurings that may be unfavorable to current bondholders, as well as the significant liquidity and financial challenges that Revlon will face in the next six to 12 months.

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