Moody’s rates Expedia notes Ba1

Moody's Investors Service said it assigned a rating of Ba1 to Expedia, Inc.'s proposed senior unsecured note issuance.

The outlook is stable.

Net proceeds will be used to help fund the proposed acquisition of Orbitz Worldwide, Inc., the third largest online travel company in the U.S., for about $1.6 billion in enterprise value and to provide additional domestic liquidity.

Moody’s said the Ba1 rating is supported by Expedia’s leading domestic position in the growing online travel agency market and moderate financial leverage for the rating category of mid- to high- 2 times pro forma for the acquisition of Orbitz. Expedia will likely benefit from an online travel market that should experience growth rates in excess of the broader travel industry, especially in emerging markets, the agency said.

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