New York, December 17, 2015 -- Moody's Investors Service ("Moody's") today placed Avon Products, Inc.'s ("Avon") Ba2 Corporate Family Rating ("CFR") and related debt instrument ratings on review, direction uncertain. This follows the company's announcement that it has signed a definitive agreement with Cerberus Capital Management ("Cerberus") to form a strategic partnership. Moody's understands that the partnership will be conducted via a joint venture that will be majority owned by Cerberus and comprise Avon's North America business. In addition Cerberus will make $435 million investment in Avon in return for convertible perpetual preferred stock that will represent slightly less than 17% ownership of Avon Products. Avon also announced that it would suspend the cash dividend on its common stock. As part of the transaction, the joint venture will assume approximately $230 million in long term liabilities from Avon, which will be partially offset by a $100 million contribution by Avon to the new North American joint venture.

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