Fitch: Cendant tender offer favorable

Fitch Ratings said it views Cendant's $1.2 billion tender offer for Orbitz, Inc. as a favorable development for Cendant. The outlook is stable.

Fitch rates Cendant's senior unsecured debt at BBB+, subordinated debt at BBB and commercial paper at F2 and PHH Corp.'s senior debt at BBB+ and commercial paper program at F2.

Although there is some integration risk, Fitch said Orbitz is profitable and Cendant has a successful track record achieving substantial cost savings through its restructuring of Galileo and integration of Budget post-acquisition.

If the tender offer is successful, Fitch said Orbitz will provide Cendant with a leading brand name in the online travel industry that will benefit its travel distribution segment and could provide additional bookings for Cendant's car rental and hotel businesses.

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