Moody’s cuts Avon Products, debt

Moody's Investors Service said it downgraded Avon Products, Inc.'s corporate family rating to Ba3 from Ba2, probability of default rating to Ba3-PD from Ba2-PD and senior unsecured instrument rating to B1 from Ba3, concluding the review that was initiated in Dec. 17, 2015.

The outlook is negative.

"The downgrade reflects Avon's smaller scale after the separation of its North American business, its higher exposure to potentially volatile emerging markets, and risks associated with successfully executing its new transformation plan," Moody's senior vice president Linda Montag said in a news release.

"It also reflects concerns that challenging economic conditions in several of the company's key regions will temper its ability to stabilize and then grow revenues and earnings in the near-term."

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