Avon’s Debt Rating Is Cut by Moody’s

That means Moody’s might later downgrade its rating for Avon but also may take no action. For now, Moody’s affirmed its A2 rating on Avon’s senior unsecured long-term debt and its Prime-1 rating on Avon’s short term debt.

Moody’s said the outlook change reflects Avon’s weakening credit metrics in recent quarters in a “difficult operating environment marked by heightened competition,” as well as the challenges of aggressive expansion into new markets. Moody’s also cited Avon’s history of debt-financed acquisitions.