S&P trims eBay rating

Standard & Poor’s said it lowered its corporate credit rating on eBay Inc. to BBB+ from A. The outlook is stable.

In conjunction with the lowering of the corporate credit rating, S&P also lowered the issue-level rating on eBay’s senior unsecured debt to BBB+ from A and the commercial paper rating to A-2 from A-1.

“The BBB+ ratings on eBay reflect our view of the company’s ‘satisfactory’ business risk profile, revised downward from strong, as a result of the planned spinoff of PayPal, which represented a significant part of eBay’s consolidated business at about 44% of total revenues in 2014 and about 35% of the company’s total operating income (excluding unallocated corporate and other expenses),” said S&P credit analyst David Tsui in a news release.

Despite the reduced product diversification, eBay is still considered one of the largest e-commerce platforms globally, with a highly recognizable brand name, and has a geographically diversified customer mix, the agency added.

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