Moody’s upgrades Avon notes

Moody’s Investors Service said it upgraded the ratings of the senior unsecured notes issued by Avon Products, Inc. to B1 from B3 and withdrew the instruments’ loss given default assessment. Avon’s B1 corporate family rating remains unchanged.

“The upgrade of Avon’s senior unsecured ratings to B1 from B3 follows the full redemption of the $900 million senior secured notes due 2022 issued by Avon’s wholly owned subsidiaries Avon International Operations, Inc. (AIO) and Avon International Capital PLC (AIC) concluded on Nov. 2.

Avon’s capital structure now has only one debt class: intercompany loans and the senior unsecured notes due 2023 and 2043. The repayment eliminates the previous effective subordination of the unsecured instruments relative to the senior secured notes and to Avon’s corporate family rating, the agency said.

The outlook is negative.

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