S&P affirms Cendant

Standard & Poor's said it affirmed its ratings on Cendant Corp., including its BBB+ long-term and A-2 short-term corporate credit ratings, A-2 commercial paper rating, BBB+ senior unsecured debt rating and BBB subordinated debt rating.

The outlook remains stable.

The affirmation followed the company's announcement that it will split itself into four separate publicly traded companies through the spinoff to shareholders of three businesses from Cendant: its real estate services, travel distribution services and hospitality services segments. The company's vehicle services segment will be the surviving Cendant entity.

S&P said the ratings affirmation reflected its assessment that the credit-risk profile of Cendant's existing corporate-level lenders, including its bondholders and bank group, will not be negatively affected by the proposed transaction, that existing corporate-level debt will be fully repaid concurrent with the closing of the transactions and that funding to accomplish this will be raised by the future real estate services and travel distribution entities.

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