Fitch affirms Cendant

Fitch Ratings said it affirms Cendant Corp.'s BBB+ issuer default, revolving credit facility and senior unsecured note ratings and F2 commercial paper rating and removed them from Rating Watch evolving, where they were placed on Oct. 24. The outlook is stable.

The affirmation follows the company's announcement that, in addition to pursuing its previously announced plan to spin off its Travel Distribution Services division to shareholders, it will also consider a sale of that division. The company said the net cash proceeds from a potential sale of the division, if completed, would be used primarily to reduce the debt expected to be incurred by Realogy Corp., Wyndham Worldwide and Travel Distribution Services to pay off the public corporate debt of Cendant.

Cendant has completed several steps since it announced its plan to separate into four independent, publicly traded companies on Oct. 23. Fitch said these actions have lessened the risk of debt remaining at a weakened entity or deteriorating market conditions interfering with financing for the spun entities.

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