This story first appeared in the January 5, 2004 issue of WWD. Subscribe Today.

  • REVVING THE ENGINE: Citing Revlon Corp.’s and Rev Holdings Inc.’s December report that management is exploring transactions to strengthen its balance sheet and to increase equity, Moody’s Investors Service last week revised its outlook on the companies’ debts to “developing” from “negative.” In a statement, Moody’s said the revision “recognizes the uncertainty regarding the form, terms, magnitude, timing and execution of any potential capital restructuring. Although current ratings already reflect Revlon’s severe debt burden and challenged recovery prospects (particularly at the most junior debt classes), ratings still could be lowered if Revlon is unable to achieve earnings growth following implementation of its initiatives to accelerate growth, as Moody’s would need to reevaluate Revlon’s enterprise value and the relative coverage of various debt classes.” Moody’s also affirmed its ratings on about $1.8 billion of the two entities’ various debts.