Cendant's Outlook Revised to Negative by S&P;Rtgs Afmd

NY -- Standard&Poor's CreditWire 1/28/98 -- Standard&Poor's today revised its outlook on Cendant Corp. and its wholly owned subsidiary, PHH Corp., to negative from stable. This follows Cendant's announcement that it has made a $2.7 billion unsolicited offer to acquire American Bankers Insurance Group. Cendant's and PHH's ratings, as listed below, are affirmed. The outlook revision reflects the continuation of the company's aggressive acquisition pace, which Standard&Poor's had expected would slow following its $14 billion merger with CUC International Inc. last December. Cendant's financial policy remains moderate, its profitability continues to be strong, and its balance sheet and credit measures are in line with the rating, even on a pro forma basis if they

...NY -- Standard & Poor's CreditWire 1/28/98 -- Standard & Poor's today revised its outlook on Cendant Corp. and its wholly owned subsidiary, PHH Corp., to negative from stable. This follows Cendant's announcement that it has made a $2.7 billion unsolicited offer to acquire American Bankers Insurance Group. Cendant's and PHH's ratings, as listed below, are affirmed. The outlook revision reflects the continuation of the company's aggressive acquisition pace, which Standard & Poor's had expected would slow following its $14 billion merger with CUC International Inc. last December. Cendant's financial policy remains moderate, its profitability continues to be strong, and its balance sheet and credit measures are in line with the rating, even on a pro forma basis if they are successful in their bid. Still, an approximate $4 billion worth of additional acquisitions have been announced over the last four months, including the current transaction. Integration of its many recent acquisitions and...

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