Fitch rates Avon notes A

Fitch Ratings said it assigned an A rating to Avon Products, Inc.'s $250 million 4.8% note due March 1, 2013 and $250 million 5¾% note due March 1, 2018. The notes will be governed by a new indenture and are expected to refinance commercial paper.

Avon has an issuer default rating at A, short-term issuer default rating at F1, commercial paper at F1, bank facility at A and senior unsecured notes at A.

The outlook is negative.

The rating reflects the company's unique position in the beauty market as the world's largest direct-to-consumer seller of beauty and related products, as well as its strong liquidity and cash balances, according to Fitch.

The rating also reflects debt balances that have grown in part to fund share repurchases and credit protection metrics that are at the bottom of the rating category, the agency noted.

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