S&P revises ratings outlook on Avon
NEW YORK (AP) — Credit rating agency Standard & Poor's on Monday revised its outlook on Avon Products Inc. to 'negative' from 'stable.'
The outlook reflects Avon's continued poor operating results and weak credit metrics, S&P said.
On Thursday, direct beauty products seller Avon Products said its third-quarter net income fell 81 percent, hurt by the stronger dollar and an impairment charge. The company also slashed its dividend as it works on a turnaround.
The company has been struggling to turn around its business at home and in emerging markets, but results remain weak.
S&P affirmed its "BBB-" rating, the lowest investment grade, on Avon's senior unsecured debt.
Avon shares rose 7 cents to $15.27 during midday trading.