Moody's Investors Service said Monday that it may upgrade credit ratings on online travel company Expedia Inc., citing its strong financial performance through the recession and a forecast for modest growth in the travel industry.
Moody's upgraded its outlook on the company to "Positive" from "Stable." Expedia has a "Ba1" rating, one notch below investment grade. An upgrade could lower the company's cost of borrowing.
"The outlook revision reflects Expedia's continued strong operating performance through the economic downturn, our expectation that the travel industry is expected to see modest growth through 2011 and management's commitment to more conservative financial policies," Moody's said in a statement.
Moody's also assigned a "Ba1" rating to $500 million worth of 10-year notes that Expedia plans to issue.
Expedia shares rose 9 cents to $22.77 in morning trading.
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