Moody's affirms Cendant

Moody's Investors Service said it affirmed Cendant Corp.'s Baa1 rating and stable outlook after the announcement that it has agreed to purchase Orbitz Inc. for about $1.25 billion or $27.50 per share.

Moody's affirmed Cendant's senior unsecured notes and convertible bonds at Baa1, senior unsecured shelf at prospective Baa1, subordinated debt at prospective Baa2, preferred shelf at prospective Baa3, short-term rating at Prime-2 and Cendant Capital I, II and Cendant Capital III's guaranteed preferred stock at prospective Baa2.

The affirmation of the ratings reflects Moody's opinion that the acquisition will improve Cendant's position in the online travel industry by increasing its market share, eliminating an industry competitor and providing Cendant access to Orbitz's more advanced technology platform.

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