S&P rates Cendant CP A-2

Standard & Poor's said it assigned its A-2 rating to Cendant Corp.'s proposed $1 billion 4(2) commercial paper program. Cendant Corp.'s $3.5 billion five-year revolving credit facility will serve as backstop.

Concurrently, the ratings on Cendant, including its BBB corporate credit and senior unsecured debt ratings and BBB- subordinated debt rating, were affirmed. The outlook is positive.

S&P said the ratings on Cendant reflect the company's solid position in residential real estate, auto rental and hospitality and travel distribution.

Ratings also reflect the ownership of many well-regarded brands and Cendant's historical ability to generate significant discretionary cash flow, according to S&P.

Leverage, as measured by total debt to EBITDA, improved to 2.1x as of Dec. 31, 2004 from 3.1x as of Dec. 31, 2003. In addition, EBITDA coverage of interest expense improved to 6.1x from 5.2x during the same time period.

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