NEW YORK (IFR) - Standard & Poor's said on Monday it had lowered its credit rating on internet giant eBay Inc. by two notches to 'BBB+' from 'A' following its split from PayPal.

The rating was in line with what the company said it was expecting.

"The lower ratings reflect our downward revision of eBay's business risk profile as a result of the spin-off of PayPal, which accounts for about half of eBay's total revenues," S&P said.

The rating agency expects leverage to rise on the back of shareholder return activities and acquisitions. The company last week boosted its share buyback plan by US$1bn, prompting some analysts to say it could issue new bonds to finance that.

PayPal Holdings' shares rose 5% on their first day of trading after the split on Monday, valuing the company at about US$50bn.

Moody's and Fitch also both downgraded eBay by two notches to Baa1 and BBB respectively.

(Reporting by William Muoio; Editing by Natalie Harrison and Paul Kilby)

By William Muoio