Moody’s changes Revlon Consumer to stable

Moody's Investors Service said it affirmed Revlon Consumer Products Corp.’s Ba3 corporate family rating and revised the outlook to stable from negative.

The Ba2 senior secured and B2 senior unsecured ratings were also affirmed.

Moody’s said the outlook change reflects Revlon's improved operating performance since the acquisition of Colomer Group in 2013, the incremental decline in leverage in that time period and management's focus on continued deleveraging.

While debt-to-EBITDA leverage is still high (5.5 times at March 31), Moody's expects that the company's ability to generate good free cash flow supports reducing leverage to under 5 times by the end of FY2015 and ultimately to a level of 4 times over the next 18 to 24 months.

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