Summary: Cendant Corp.

On Oct. 24, 2005, Cendant Corp. announced that it was proceeding with a plan to split itself into four separate publicly-traded companies. The proposed split-up would be effected through the spin-off to shareholders of three businesses from Cendant, its Real Estate Services, Travel Distribution Services, and Hospitality Services segments, with the company's Vehicle Services segment would be the surviving Cendant entity. As a result, the current ratings on Cendant reflect Standard&Poor's expectation that the company will refinance existing corporate level debt concurrent with the spin-offs. Therefore, Standard&Poor's assessment is that the credit risk profile of these lenders, which includes both bondholders and bank group, will not be negatively affected by the proposed transaction. Prior to the

...On Oct. 24, 2005, Cendant Corp. announced that it was proceeding with a plan to split itself into four separate publicly-traded companies. The proposed split-up would be effected through the spin-off to shareholders of three businesses from Cendant, its Real Estate Services, Travel Distribution Services, and Hospitality Services segments, with the company's Vehicle Services segment would be the surviving Cendant entity. As a result, the current ratings on Cendant reflect Standard & Poor's expectation that the company will refinance existing corporate level debt concurrent with the spin-offs. Therefore, Standard & Poor's assessment is that the credit risk profile of these lenders, which includes both bondholders and bank group, will not be negatively affected by the proposed transaction. Prior to the announcement of the spin-off, Cendant's satisfactory business profile was driven by the company's solid position in the residential real estate, auto rental, hospitality, and travel distribution...

Summary