S&P cuts Avon Products, debt to B+

Standard & Poor's said it lowered its corporate credit rating on Avon Products Inc. to B+ from BB.

The outlook is stable.

At the same time, the agency lowered its issue-level ratings on all of Avon's senior unsecured debt to B+ from BB, including its multiple senior unsecured issuances. The recovery rating remains 3, indicating an expectation for meaningful (50% to 70%, at the higher end of the range) recovery for lenders in the event of a payment default or bankruptcy.

Total debt outstanding as of March 31 was about $2.6 billion.

"Our two-notch downgrade on Avon is a result of our downward assessment of the company's business risk profile and revised forecast for reduced financial performance, resulting in weaker projected credit metrics," S&P credit analyst Jacqueline Hui said in a news release.

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