Fitch cuts Avon loans, notes

Fitch Ratings said it downgraded the following Avon Products, Inc. long-term ratings and placed them on Rating Watch Negative: long-term issuer default rating to BB from BB+; bank credit facility to BB from BB+; bank term loan to BB from BB+; and senior unsecured notes to BB from BB+.

Fitch said the downgrade of Avon's ratings is due to deteriorating operations and intensifying business model risk as reflected in continued double digit declines in revenue, volume and representative (rep) counts in North America and Asia Pacific through the first three quarters of 2013. Additionally, there are challenging market conditions in the Latin American and European regions, the agency said.

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