Fitch affirms Avon

Fitch Ratings said it affirmed Avon Products, Inc.'s long-term issuer default rating at B+, and its unsecured notes at B/RR5.

Fitch affirmed the B+ long-term issuer default rating of Avon International Operations, Inc., and its BB+ secured bond due in 2022, in addition to Avon International Capital plc's BB+ secured bond due in 2022.

The recovery ratings of RR1 were removed from both secured bonds due in 2022.

Fitch assigned a positive outlook to Avon and its subsidiaries and removed them from rating watch positive.

The agency said the actions follow an announcement on Jan. 3 that the acquisition of Avon by Natura & Co. Holding SA was completed.

Fitch said the outlook for Avon and its subsidiaries reflects an expectation that the credit quality of Natura and Avon will migrate to around BB- during the next 12 to 24 months, as debt at both entities will likely be replaced by debt at the holding company, Natura & Co., with upstream guarantees from both entities.

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