Fitch applies BBB- to Expedia notes

Fitch Ratings said it assigned a BBB- rating to Expedia, Inc.'s announced issuance of senior unsecured notes.

Expedia plans to use the note proceeds for general corporate purposes, which may include the repayment of $500 million senior unsecured notes due 2018, working capital, capital expenditures, acquisitions, and shareholder returns.

Fitch said it calculates pro forma leverage slightly above 2 times, net of the 2018 maturity, which is marginally higher than 1.9 times as of June 30.

The agency forecasts Expedia to de-lever back below 2 times within a 12-month horizon.

“Expedia has an established track record of temporarily exceeding 2 times and de-levering back below within a reasonable time period, which the current ratings have some tolerance for,” Fitch said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.