Moody's ups TravelClick loans to Ba2

Moody's Investors Service said it upgraded to Ba2 (LGD2, 29%) from Ba3 (LGD2, 29%) the rating on TravelClick Inc.'s senior secured credit facility.

The action follows the $12 million in permanent repayment of the term loan's balance. As of Sept. 30, the company has reduced the term loan to $78 million from an original face amount of $90 million.

Moody's affirmed the B1 corporate family and probability-of-default ratings.

Contrary to fluctuating trends in the lodging industry, TravelClick has reported fairly stable consolidated revenues and earnings over the past couple years, the agency said.

The B1 rating is constrained by the company's relatively modest revenue size, reliance on strategic partners and the vulnerability of revenues to highly cyclical demand within the luxury and upper upscale hotel industry, the agency said.

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