Moody's Investors Service Downgrades Avon's Credit Rating

Moody’s Investors Service downgraded its credit rating for Avon Products Inc. According to the bond credit rating company, the downgrade is due in part to Avon Products’ spinoff of its North America unit. Avon’s corporate family rating was downgraded from Ba2 to Ba3, its probability-of-default rating from Pa2-PD to Ba3-PD, and its senior unsecured instrument rating from Ba3 to B1. Avon Products sold its North America business, renamed New Avon, to private equity firm Cerberus Capital Management LP in March 2016.