Market leadership in opaque travel services; and Good cash cushion. Significant supplier concentration; An acquisition-based growth strategy; and Intense industry rivalry. The 'B' ratings on Priceline.com Inc. and its two convertible senior note issues due 2010 and 2025 reflect the online travel agency's significant supplier concentration in airlines and hotels, low profit margins, acquisition-driven growth strategy, and participation in the highly competitive online travel market. These factors are only partially offset by the company's leading position in the consumer bid-based travel business and its good cash balances, which provide some cushion. Norwalk, Conn.-based Priceline.com is a provider of bid-based and retail travel services in the areas of airline tickets, hotel rooms, rental cars, vacation packages, cruises and travel insurance. Besides
