Fitch downgrades Avon

Fitch Ratings said it downgraded Avon Products, Inc.'s and its subsidiary's rating as follows:

• Avon Products, Inc.: Long-term issuer default rating to BB+ from BBB-; short-term issuer default rating to B from F3; commercial paper program to B from F3; bank credit facility to BB+ from BBB-; bank term loan to BB+ from BBB-; and senior unsecured notes to BB+ from BBB-; and

• Avon Capital Corp.: Short-term issuer default rating to B from F3; and commercial paper program to B from F3.

The outlooks were revised to stable from negative.

Moody's said the downgrade of Avon's ratings is due to a confluence of factors that are not representative of an investment-grade profile. These factors include the combination of a continued decline in U.S. revenues, lack of sustainable operating income growth in key international markets and weakened credit protection measures.

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