Research Update: Booking Holdings Inc. Ratings Raised To 'A-' On Strong Growth; Outlook Stable

Norwalk, Conn.-based Online Travel Agency (OTA) company Booking Holdings Inc. (Booking) has demonstrated strong underlying growth over the past three years and we expect the company's growth momentum to continue. Furthermore, we expect the company to generate more than $4 billion of free operating cash flow annually and maintain its surplus cash balance. Accordingly, we are raising our ratings on Booking, including raising the corporate credit rating to A-' from 'BBB+'. The outlook is stable. The stable rating outlook reflects our expectation that Booking will grow revenues in the low- to mid-double-digit percentage area, maintain its marketing efficiency, and have a large net cash position over the next 12 to 24 months. We expect the company will maintain its leadership

...+ Norwalk, Conn.-based Online Travel Agency (OTA) company Booking Holdings Inc. (Booking) has demonstrated strong underlying growth over the past three years and we expect the company's growth momentum to continue. + Furthermore, we expect the company to generate more than $4 billion of free operating cash flow annually and maintain its surplus cash balance. + Accordingly, we are raising our ratings on Booking, including raising the corporate credit rating to A-' from '###+'. The outlook is stable. + The stable rating outlook reflects our expectation that Booking will grow revenues in the low- to mid-double-digit percentage area, maintain its marketing efficiency, and have a large net cash position over the next 12 to 24 months. We expect the company will maintain its leadership position in the global online travel agency industry and grow its alternative accommodation portfolio and advertising business....

Research Update