S&P: Cendant unaffected

Standard & Poor's said its credit rating and outlook on Cendant Corp. (BBB/positive/A-2) are not affected by the company's announcement that it had increased its share repurchase target for 2005 to $1 billion.

Cendant had previously maintained a 2005 target of $500 million in share repurchases.

S&P said the company is expected to continue to use its strong cash flow after capital expenditures and dividends, which amounted to about $2 billion in 2004, primarily for acquisitions and share repurchases.

Despite this expected increase in share repurchase activity, S&P said it continues to expect Cendant's credit measures to remain good for the ratings and even improve modestly due to expected earnings growth during 2005.

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