S&P lowers Revlon

S&P said it lowered its corporate credit rating on Revlon Inc. to B- from B. The outlook is negative.

In addition, the agency lowered its issue-level rating on the company's $1.8 billion term loan B to B- from B. The 3 recovery rating remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

Concurrently, S&P lowered its issue-level rating on the company's $500 million notes due in 2021 and $450 million notes due in 2024 to CCC+ from B-. The recovery rating on both remains 5, reflecting an expectation for modest (10%-30%; rounded estimate: 15%) recovery of principal in the event of a payment default.

“The downgrade reflects our expectation that Revlon's leverage will remain elevated and that it will burn a substantial amount of cash in 2017 because of weaker-than-expected performance through the first nine months of 2017, especially in the third quarter,” S&P said in a news release.

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