S&P assigns Priceline debt BBB+

Standard & Poor's said it assigned its BBB+ issue-level rating to Priceline Group Inc.'s proposed dollar-denominated senior unsecured debt offering.

Proceeds will be used for general corporate purposes, including share repurchases, debt repayments and acquisitions.

The issue-level rating is at the same level as Priceline’s corporate credit rating.

Pro forma for the debt offering, the agency expects the company to maintain a net cash position with no debt leverage. The debt leverage threshold for S&P’s BBB+ corporate credit rating on Priceline is 1 time.

S&P assesses Priceline's financial risk profile as "modest" because of its net cash position, lack of debt leverage, moderate financial policy, and strong discretionary cash flow generation, which partly are offset by potential travel-disruption-related volatility. The agency expects the company to maintain its prudent approach regarding share repurchases, dividends and acquisitions.

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