PayPal Holdings Inc.'s Proposed Senior Unsecured Debt Rated 'A-'

NEW YORK (S&P Global Ratings) May 20, 2024--S&P Global Ratings today assigned its 'A-' debt rating to PayPal Holdings Inc.'s proposed offering of senior unsecured debt. We expect the company to use vast majority of the proceeds to prefund its $1.25 billion senior notes maturing in October 2024. We view this planned issuance as largely leverage neutral and continue to expect that PayPal's debt-to-EBITDA ratio will remain below 1.0x in 2024 and in 2025. The company performed in line with our expectations in 2023, growing its net revenue by 8%, slightly below the level of its major peers in the payment industry. Since September 2023, PayPal has almost completely reshuffled its top management following a substantial decline in its stock

...May 20, 2024 NEW YORK (S&P Global Ratings) May 20, 2024--S&P Global Ratings today assigned its 'A-' debt rating to PayPal Holdings Inc.'s proposed offering of senior unsecured debt. We expect the company to use vast majority of the proceeds to prefund its $1.25 billion senior notes maturing in October 2024. We view this planned issuance as largely leverage neutral and continue to expect that PayPal's debt-to-EBITDA ratio will remain below 1.0x in 2024 and in 2025. The company performed in line with our expectations in 2023, growing its net revenue by 8%, slightly below the level of its major peers in the payment industry. Since September 2023, PayPal has almost completely reshuffled its top management following a substantial decline in its stock price in 2022 and 2023. It is too early to say if the new leadership has proven successful, in our view. The company aims to "transform" the business strategy this year by streamlining it while focusing on profitable growth in the longer term. The...

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