Moody's lowers Expedia to junk

Moody's Investors Service said it downgraded Expedia's senior unsecured rating to Ba2 from Baa3 concluding a review for possible downgrade initiated on June 19.

At the same time, Moody's said it assigned a Ba2 corporate family rating and a Ba2 probability of default rating to Expedia.

The outlook is negative.

Moody's said it had placed Expedia's senior unsecured rating on review for possible downgrade on June 19 following the company's announcement that it intended to repurchase up to about 42% of its common stock currently outstanding, excluding class B shares through a modified Dutch auction tender.

According to the agency, Expedia's Ba2 corporate family rating reflects the company's leading position in the consumer online travel agency market and strong free cash flow, supported by its online merchant hotel and other travel services.

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