MOODY'S PLACES THE LONG-TERM DEBT RATINGS OF AVON PRODUCTS, INC. AND SUBSIDIARY UNDER REVIEW FOR POSSIBLE UPGRADE
New York, 05-02-96 -- Moody's Investors Service placed the long-term debt ratings of Avon Products, Inc. and its subsidiary, Avon Capital Corporation (ACC), under review for possible upgrade, reflecting Avon's consistent profitability and cash flow generation, as well as its valuable global distribution network for a wide variety of beauty and related products. The review will focus on Avon's growth prospects in existing and new markets worldwide, as well as the risks and opportunities of its diversification into fashion and accessories sales. Moody's will also consider the likely impact of Avon's financial policies on capital formation and other bondholder protection measures. Avon Capital Corporation's Prime-2 guaranteed commercial paper rating was not placed under review and was confirmed.
Ratings placed under review are:
Avon Capital Corporation -- the company's Baa2 rating for $100 million of guaranteed senior unsecured debt.
Avon Products, Inc. -- the company's Baa2 rating for $7 million of industrial revenue bonds.
Avon Products, Inc., based in New York City, is the parent company of Avon Capital Corporation and the guarantor of its debt. With a worldwide independent direct salesforce of about 2 million sales representatives, Avon is the world's leading direct seller of beauty related products and fashion jewelry. The company also markets, through its existing distribution network, an extensive line of gifts and collectibles.
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