Moody's cuts Revlon view to negative, lowers to SGL-4

Moody's Investors Service said it affirmed Revlon Consumer Products Corp.'s long-term ratings, including the corporate family rating of B3. At the same time, Moody's lowered the company's speculative grade liquidity rating to SGL-4 from SGL-3 and revised the outlook on the company's long term ratings to negative from stable.

These rating actions reflect the significant financial, liquidity and operational challenges Revlon faces over the next six to 12 months as a result of the lower-than-anticipated results of the company's strategic growth initiatives, including the relaunching of Almay and the introduction of Vital Radiance.

Ratings affirmed include the corporate family rating at B3, the $160 million senior secured revolving credit facility due 2009 at B2, the $700 million senior secured term loan facility due 2010 at B3, the $387 million senior notes due 2011 at Caa2 and the $217 million 8.625% senior subordinated notes due 2008 at Caa3.

The company's current B3 long-term credit rating and negative outlook reflect the materially negative free cash flow, high leverage and weak liquidity profile of Revlon, offset in part by its strong brand franchise in color cosmetics, skin care and personal care products, Moody's said.

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