Avon Products? Rating Cut To Junk By S&P

  |   05 November, 2014   |   412   |   3980

Standard & Poor’s Ratings Services on Monday cut beauty products direct seller Avon Products Inc. corporate rating to junk, citing the company’s slower-than-expected progress to improve business and weak results, particularly in the U.S. and Brazil.



   “Some of the company’s issues are deeper than we anticipated,” S&P said, cutting Avon’s corporate rating to double-B-plus, one notch below investment grade. While the company has a good geographic diversity, the rating agency said, “it will take time to re-engage its active representatives and rebuild sales growth.”



S&P, however, kept the company’s outlook at stable, signaling an expected improvement.