S&P changes Revlon to negative

S&P said it affirmed its CCC+ corporate credit rating on Revlon Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the CCC+ issue level rating on the company's $1.8 billion term loan B. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

Concurrently, the agency affirmed the CCC issue-level ratings on the company's $500 million notes due 2021 and $450 million notes due 2024. The recovery rating remains 5, reflecting an expectation for modest (10%-30%; rounded estimate: 15%) recovery.

S&P said the negative outlook reflects a belief that the company's performance will remain volatile throughout 2018 and the company may fail to strengthen its operations and restore its liquidity given operational challenges and ongoing weakness in the retail industry.

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