Research Update: PayPal Holdings Inc. 'BBB+/A-2' Ratings Affirmed On Still Very Low Leverage; Outlook Remains Stable

PayPal Holdings Inc.'s capital policy has become more aggressive with an acquisition budget between $1 billion and $3 billion a year, and projected share repurchases between 40% and 50% of generated free cash in 2019 and 2020. We still project very low net leverage overall, given the very strong cash position following the sale of the U.S. retail loan book to Synchrony and stellar performance. We are affirming our 'BBB+/A-2' ratings on PayPal Holdings Inc. The stable outlook reflects our expectation of low double-digit revenue growth, careful further expansion of the merchant loan book, and a moderately decreasing cash position over the next two years On Aug. 16, 2018, S&P Global Ratings affirmed its 'BBB+/A-2' ratings on PayPal Holdings Inc.

...+ PayPal Holdings Inc.'s capital policy has become more aggressive with an acquisition budget between $1 billion and $3 billion a year, and projected share repurchases between 40% and 50% of generated free cash in 2019 and 2020. + We still project very low net leverage overall, given the very strong cash position following the sale of the U.S. retail loan book to Synchrony and stellar performance. + We are affirming our '###+/A-2' ratings on PayPal Holdings Inc. + The stable outlook reflects our expectation of low double-digit revenue growth, careful further expansion of the merchant loan book, and a moderately decreasing cash position over the next two years...

Research Update