Newly acquired Trendwest seen operating, securitizing independently: Cendant's ratings, ABS experience to bolster Trendwest paper

With the announcement that it had purchased Trendwest Resorts last week, Cendant Corp. is now the parent company for two of the more visible timeshare finance companies in the term ABS market. Cendant had already owned RCI, the largest vacation timeshare exchange.

Rather than combining Trendwest with Cendant unit Fairfield Resorts, the parent will likely keep the two entities separate, meaning each will continue to securitize independently of the other, said sources familiar with the situation. This acquisition is seen bolstering Trendwest ABS, due to the financial strength of the new parent, rated Baa1/BBB/BBB+ by Moody's, S&P and Fitch, as well as Cendants leading position in the industry and experience as a securitizer.