S&P rates Avon notes BBB-

Standard & Poor's said it assigned BBB- debt ratings to Avon Products Inc.'s newly issued $1.5 billion three-, seven-, 10- and 30-year senior unsecured notes.

The proceeds and available cash on hand will be used to repay about $1.9 billion of existing indebtedness and to fund general corporate expenses, S&P said.

The agency said it expects leverage will decrease to the low-3x area after the transaction and it is expected to remain below 3.5x for the next year.

The ratings reflect the company's satisfactory business profile based on its brand equity and good market share in the direct sales channel and geographic diversity, S&P said.

The ratings also consider its significant financial profile based on its moderate financial policy, credit metrics at improved levels and adequate liquidity, the agency said.

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