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Investing.com -- S&P Global Ratings assigned a ’BBB’ issue-level rating to the proposed senior unsecured notes of Seattle-based Expedia (NASDAQ:EXPE) Group Inc. today. The company plans to utilize the proceeds from these notes for a variety of corporate purposes. These include debt refinancing, dividends, share repurchases, working capital, capital expenditures, and acquisitions.
The proposed senior unsecured notes will have the same rank as the company’s existing senior unsecured notes. This issue-level rating aligns with the ’BBB’ issuer credit rating S&P Global Ratings has given to Expedia.
The ’BBB’ issuer credit rating and stable outlook given to Expedia reflect the company’s dominant market share in the U.S., its considerable scale, and strong brand recognition. S&P Global Ratings anticipates that travel demand and volume growth will continue in 2025, which supports their expectation of a 5%-7% revenue growth and a slight EBITDA margin expansion for Expedia in 2025. The ratings agency believes that Expedia will adhere to a cautious financial policy, ensuring that the company’s leverage will stay significantly below their 1.5x downgrade threshold for the next two years.
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