Moody’s trims Travelport

Moody’s Investors Service said it downgraded Toro Private Holdings II, Ltd. (Travelport) corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3 PD. Moody’s also downgraded Travelport Finance (Luxembourg) Sarl first-lien senior secured bank facilities to B3 from B2 and second -lien senior secured bank facilities to Caa3 from Caa2.

“The decision to downgrade Travelport’s ratings reflects the expected deterioration in the operating performance and cash flow generation of the company as a consequence of the coronavirus outbreak. Uncertainty around the depth and duration of the disruption across the travel sector and the GDS market raises concerns around the recovery path of the business,” said Luigi Bucci, Moody’s lead analyst for Travelport, in a press release.

“As a result, we expect free cash flow (FCF) to remain negative over the next 12/18 months and Moody’ s-adjusted leverage to be well above levels commensurate for a B3 rating. The sale of eNett may support liquidity in the short term but will not have a material impact on Travelport’s credit metrics,” added Bucci.

The outlook is negative.

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