The stable outlook reflects our expectation that PayPal will sustain its strong franchise and improve profitability at Venmo, while operating with low leverage (well below 1.5x) in the next two years. While we expect the company to expand its loan book, we think incremental loan loss provisions will be contained. We could lower the ratings if leverage approaches 1.5x, for example because of a very large acquisition in the payment sector in which valuations have surged recently, or if the loan book grows much faster than we expect with mounting credit losses. We could also lower the ratings if reputation risk increases, for example following damaging cyberattacks at PayPal or at one of its main partners. An upgrade is not
