Fitch rates eBay notes A

Fitch Ratings said it assigned an A rating to eBay Inc.'s proposed issuance of up to $1.5 billion of senior unsecured notes. The company has a long-term issuer default rating of A and senior unsecured debt rating at A.

eBay said it expects to issue the notes with a combination of three-year, five-year and 10-year maturities. The proceeds will be used general corporate purposes which Fitch said believes could include acquisitions, working capital, share repurchases and the financing of consumer receivables in its Bill Me Later business.

The outlook is stable.

The company's conservative financial policies and credit protection measures, as well as strong financial flexibility and liquidity highlighted by a free cash flow conversion rate in the range of 25% of revenues support the ratings, Fitch said.

Credit concerns center on competitive dynamics negatively impacting growth of the 'Marketplaces' business and the increased acquisition risk inherent in the company's strategy of sourcing growth outside its domestic market, the agency said.

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