Moody's confirms Avon

Moody's Investors Service said it affirmed the Baa1 long-term senior unsecured rating of Avon Products, Inc. and the short-term rating of Avon Capital Corp. at Prime-2 and revised the outlook to stable from negative.

The outlook revision reflects Coty Inc.'s withdrawal of its offer to acquire Avon.

The transaction, if successful, could have created a new entity that was more highly levered. In addition, Coty's withdrawal allows Avon's new senior management team to focus on executing key strategies to improve the company's operations, Moody's said.

The affirmation of Avon's Baa1 rating reflects Moody's expectation that the company's financial performance will improve modestly over the next 12 to 18 months.

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