PayPal Holdings Inc.'s ¥90 Billion Senior Unsecured Debt Rated 'A-'

NEW YORK (S&P Global Ratings) June 1, 2023--S&P Global Ratings today said it assigned its 'A-' debt rating to PayPal Holdings Inc.'s offering of ¥90 billion senior unsecured debt. We expect the company to use the proceeds to refinance the unsecured Japanese yen-denominated credit facility that funds "buy now, pay later" lending of PayPal's Paidy business in Japan. We view this issuance (equivalent to about $650 million) across two-, three-, and five-year tenors as leverage neutral and continue to expect PayPal's S&P-adjusted debt to EBITDA to remain below 1.0x in 2023. PayPal acquired Paidy in 2021. The Japanese entity offers instant, monthly-consolidated credit to consumers using proprietary models and machine learning to underwrite transactions, while also guaranteeing payments to merchants.

...June 1, 2023 NEW YORK (S&P Global Ratings) June 1, 2023--S&P Global Ratings today said it assigned its 'A-' debt rating to PayPal Holdings Inc.'s offering of Ñ90 billion senior unsecured debt. We expect the company to use the proceeds to refinance the unsecured Japanese yen-denominated credit facility that funds "buy now, pay later" lending of PayPal's Paidy business in Japan. We view this issuance (equivalent to about $650 million) across two-, three-, and five-year tenors as leverage neutral and continue to expect PayPal's S&P-adjusted debt to EBITDA to remain below 1.0x in 2023. PayPal acquired Paidy in 2021. The Japanese entity offers instant, monthly-consolidated credit to consumers using proprietary models and machine learning to underwrite transactions, while also guaranteeing payments to merchants....

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