S&P rates Expedia notes BB

Standard & Poor's said it assigned a BB rating and 3 recovery rating to Expedia Inc.'s proposed $500 million senior notes due 2016. The BB corporate credit rating was affirmed.

The outlook is stable.

Proceeds will be used to pay off the balance on the company's $1 billion unsecured revolving credit facility and for general corporate purposes.

S&P said the rating reflects the intense competitiveness of the online travel agency market, shifting supplier dynamics and a tolerance for potentially high debt leverage.

Expedia's leading market share, broad portfolio of brands and services, and good discretionary cash flow generation partially offset these factors, the agency said.

© 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.