S&P cuts Expedia

Standard & Poor's said it lowered its corporate credit rating on Expedia Inc. to BB from BB+.

The agency said it also lowered the rating on the company's existing senior unsecured notes due 2018 to BB from BB+.

The outlook is stable.

S&P noted that it removed all ratings from CreditWatch, where we placed them with negative implications on June 19, the date at which the company announced its initial tender offer plan.

The downgrade and removal from CreditWatch followed Expedia's announcement that it is reducing the size of its tender offer to purchase its common stock because of credit market conditions that affect financing costs, S&P said, adding that the ratings reflect the intense competitiveness of the online travel agency market, shifting supplier dynamics and a tolerance for potentially high debt leverage.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.