...The ratings on Cendant reflect the company's solid position in residential real estate and auto rental, its relatively good position in hospitality and travel distribution, and its niche position in financial services. Ratings also reflect the ownership of many well-regarded brands and Cendant's strong historical cash flow. These factors are offset by the company's exposure to the real estate and travel and leisure industries, which may be affected by cyclical economic trends or geopolitical events, and a historically aggressive growth strategy. On July 8, 2004, Cendant announced that it is considering strategic alternatives for its mortgage business, which is operated by the wholly owned PHH Corp. subsidiary, including the sale of the mortgage origination platform and mortgage servicing business. At this time, Standard & Poor's Ratings Services placed its long-term ratings for PHH on CreditWatch with negative implications (ratings on Cendant were affirmed). Standard & Poor's has historically...
