Fitch assigns BBB+ to PayPal

Fitch Ratings said it assigned an initial BBB+ long-term issuer default rating to PayPal Holdings, Inc., as well as its wholly owned subsidiary, PayPal Inc. following the company's separation from eBay Inc.

The outlook is stable.

Fitch said the ratings and outlook reflect its expectations for a continuation of strong operating performance within the context of secular growth markets and conservative financial policies through at least the intermediate-term.

The agency expects strong total processing value (TPV) growth to drive solid mid-teens FX neutral organic revenue growth through the intermediate-term, despite lower take-rates associated with rapidly growing mobile payments. In addition, significant market fragmentation supports Fitch's confidence in PayPal's growth prospects.

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