S&P: Cendant unchanged

Standard & Poor's said its credit rating and outlook on Cendant Corp. (BBB/positive/--) are unchanged following the company's announcement that it had signed a definitive agreement to acquire Orbitz Inc. (unrated entity).

S&P said the acquisition enhances Cendant's presence in the rapidly growing online travel distribution business by combining the Orbitz brand with Cendant's existing Cheap Tickets brand.

Despite the acquisition using a majority of Cendant's excess cash, S&P said it continues to be comfortable with its previous expectation that Cendant will be successful in reducing total debt by about $2 billion during 2004, of which $1.4 billion had been paid as of June 30.

S&P said it expects that leverage, as measured by total debt to EBITDA, will improve to the low-2x area in 2004 from 3.1x at Dec. 31, 2003.

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