Cendant Corp. Outlook Revised to Positive As Credit Measures Expected to Improve

NEW YORK (Standard&Poor's) April 23, 2004--Standard&Poor's Ratings Services revised today its outlook for Cendant Corp. to positive from negative, and its outlook for Cendant's wholly owned subsidiary, PHH Corp. to stable from negative. At the same time, all related ratings, including the 'BBB' corporate credit rating on Cendant and the 'BBB+' counterparty credit rating on PHH, were affirmed. Please refer to the PHH Corp. summary analysis published concurrently by Standard&Poor's for additional information regarding this entity. New York, N.Y.-based Cendant had $5.65 billion of corporate debt outstanding as of March 31, 2004. Corporate debt includes Upper Decs, but excludes debt under management and mortgage programs. "The outlook revision reflects good operating momentum at the

...estate industry remains healthy thus far in 2004, despite somewhat higher long-term interest rates. Cendant repaid about $800 million in debt in 2003, and an additional $2 billion in debt is expected to be eliminated in 2004 (includes Upper Decs). The company's 2004 share repurchases and dividends are expected to be managed at levels that allow Cendant to meet its debt reduction targets. Credit measures are expected to continue to improve as debt is reduced, and as the travel environment gradually rebounds. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find Ratings, then Credit Ratings Search....

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