S&P lowers Sabre to stable

Standard & Poor's said it affirmed Sabre Holdings Corp.'s B corporate credit rating.

The outlook was revised to stable from positive.

The outlook revision is based on an expectation of a longer time frame to an upgrade, S&P said.

While the settlement and the multi-year distribution agreement with AMR is a longer-term positive for Sabre, the monetary payment to AMR does represent a short-term negative for Sabre, the agency said.

The terms of the settlement were not disclosed.

The rating incorporates an assumption of fairly stable operating performance, despite an ongoing dispute with one of its airline customers and competitive pressure at Travelocity, its online travel agency, S&P said.

Travelocity could continue to lose market share to Expedia Inc. and Priceline.com Inc. over the intermediate term, the agency added.

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