S&P affirms IAC/InterActive

Standard & Poor's said it affirmed the BB corporate credit rating on IAC/InteractiveCorp and removed it from CreditWatch, where it was placed with negative implications Nov. 5, 2007, following IAC's announcement that it planned to divide itself into five publicly traded companies.

The outlook is stable.

S&P said the affirmation follows the close of the spinoff and evaluation of the company's business outlook, financial policy and capital structure.

The BB corporate credit rating reflects IAC's reduced level of business diversity following the spinoffs, competition from well-positioned and better-capitalized competitors, several startup loss generating businesses and the risk of extended investment periods for startup initiatives and vulnerability to continuing changes in technology, and consumer and business demands, the agency said.

These factors are partially offset by the company's adequate liquidity position provided by cash balances, good conversion of EBITDA to discretionary cash flow, low debt leverage following the tender of the large majority of 7% senior notes and fairly well-established internet brands, S&P noted.

Pro forma debt-to-EBITDA ratio was 0.6 times as of June 30.

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