Research Update: Cendant Corp.'s Commercial Paper Program Rated 'A-2', Other Ratings Affirmed

On April 1, 2005, Standard&Poor's Ratings Services assigned its 'A-2' rating to Cendant Corp.'s proposed $1 billion 4(2) commercial paper program. Cendant Corp.'s $3.5 billion five-year revolving credit facility will serve as backstop. Concurrently, the ratings on New York, N.Y.-based Cendant, including its 'BBB' corporate credit rating, were affirmed. The outlook is positive. Approximately $4.3 billion in debt (excluding the debt at PHH Corp.), was outstanding at Dec. 31, 2004. The ratings on Cendant reflect the company's solid position in residential real estate, auto rental, and hospitality and travel distribution. Ratings also reflect the ownership of many well-regarded brands and Cendant's historical ability to generate significant discretionary cash flow. These factors are tempered by the company's exposure to

...On April 1, 2005, Standard & Poor's Ratings Services assigned its 'A-2' rating to Cendant Corp.'s proposed $1 billion 4(2) commercial paper program. Cendant Corp.'s $3.5 billion five-year revolving credit facility will serve as backstop. Concurrently, the ratings on New York, N.Y.-based Cendant, including its '###' corporate credit rating, were affirmed. The outlook is positive. Approximately $4.3 billion in debt (excluding the debt at PHH Corp.), was outstanding at Dec. 31, 2004. The ratings on Cendant reflect the company's solid position in residential real estate, auto rental, and hospitality and travel distribution. Ratings also reflect the ownership of many well-regarded brands and Cendant's historical ability to generate significant discretionary cash flow. These factors are tempered by the company's exposure to the travel and leisure and residential real estate industries, which may be affected by cyclical economic trends or geopolitical events, and a historically aggressive growth...

Research Update