Largest online travel agency and market leader in Europe. Good EBITDA margin. Intense competitive pressures. Low debt leverage. Strong conversion of EBITDA to discretionary cash flow. Moderate financial policy. Strong liquidity. The rating outlook is stable. Priceline.com's continuing competitive advantages suggest that the company can maintain current credit metrics despite economic uncertainty in Europe. We expect the company to maintain adjusted debt leverage at below 2x. We could raise the rating over the intermediate term if the company successfully expands into new markets, maintains its competitive edge, and sustains strong profitability and credit measures. We could lower the rating if new entrants or existing competitors threaten Priceline.com's competitive position in Europe or the U.S., leading to revenue and margin deterioration.
