Moody’s rates Avon notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to the proposed $350 million senior secured notes to be issued by Avon International Capital, plc, a fully owned subsidiary of Avon Products, Inc.

The agency simultaneously placed the rating under review with direction uncertain.

Proceeds from the issuance, together with available cash, may be used to prepay the $387 million outstanding senior notes maturing in March 2020.

Avon's B1 corporate family rating, B1-PD probability of default rating and B3 senior unsecured notes rating, all of which are under review with direction uncertain, as well as the Ba1 senior secured rating on the $500 million senior secured notes due in 2022 issued by Avon International Operations, Inc., are unchanged.

“The Ba1 instrument rating of the proposed senior secured notes reflects the instruments' priority position in the capital structure and the fact that the secured debt benefit from the loss absorption provided by the significant amount of unsecured debt sitting below in the structure,” the agency said in a news release.

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