NEW YORK (AFX) - Standard & Poor's Rating Services said Friday that Revlon Inc.'s delay of a stock sale and credit refinancing will not hurt its credit rating.
S&P said it is maintaining its ratings and outlook on the company at 'B-' and 'Stable,' as the company's liquidity remains adequate.
S&P said Revlon's outlook could be revised to negative if liquidity becomes constrained, the stock offering does not start within six months or operating performance doesn't meet expectations.
Revlon's stock plunged more than 37 percent Friday, after the cosmetics company announced that its earnings before items this year could fall below 2005 levels. The company also said it would push back its sale of $75 million in stock to later this year or early 2007 and defer consolidation of a proposed refinancing of its credit facility.
Revlon shares rose 3 cents to $1.94 in after-hours trading on the INET electronic exchange. They had closed down $1.13, or 37 percent, at $1.91 in regular trading on the New York Stock Exchange.
Earlier on the NYSE, shares fell to $1.80, below a previous 52-week low of $2.33 set in November.
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