S&P's Cendant ratings unaffected

Standard & Poor's said its ratings and outlook on Cendant Corp. (BBB+/stable/A-2) are not affected by the company's announcement that, in addition to pursuing its previously announced plan to spin off its Travel Distribution Services division, it will also consider a sale of this division.

The pursuit of a potential sale stems from unsolicited interest to acquire the division and no material tax liability in the event of a sale, as opposed to a sale of the other divisions that are in the process of being spun off, the agency said. In addition, Cendant will refinance its existing corporate debt whether or not the division is sold or spun off.

S&P said it does not believe that the potential sale of the division will impact the position of existing lenders or alter the likelihood that the planned refinancing of Cendant's corporate level debt will occur. In addition, given current market conditions and overall operating trends, a high probability exists that the spinoffs and refinancing plans will be achieved, the agency added.

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