Moody's changes Cendant view to developing

Moody's Investors Service said it affirmed Cendant Corp.'s Baa1 senior unsecured rating after the company announced its intention to split the company into four separately traded entities.

The outlook was changed to developing from stable.

Cendant's ratings reflect the company's stable cash flow from its various, predominately fee-for-service businesses, modest asset risk and its diversified branded portfolio of businesses in travel and real estate services, the agency said.

S&P said the ratings also reflect the fact that the travel distribution segment addressed Cedant's weak market position in the online segment of travel distribution through several recent acquisitions, but the company continues to face integration challenges as it executes technology migration and its business plan to realize significant cost and revenue synergies.

S&P expected Cedant to continue paying its dividend and said the company's previously announced share repurchase target of $2 billion through 2006 is no longer operative.

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