S&P: Travelport view negative

Standard & Poor's said it revised the outlook Travelport Holdings Ltd. and its operating subsidiary Travelport LLC to negative from stable.

The agency also said it affirmed the B- long-term corporate credit ratings on Travelport Holdings and Travelport, along with the B long-term rating on Travelport's senior secured debt. The recovery rating on the senior secured debt remains unchanged at 2.

The CCC+ issue rating and 5 recovery rating on Travelport's senior unsecured debt remain unchanged. The CCC issue ratings and 6 recovery ratings on Travelport's various subordinated debt instruments also remain unchanged, the agency said.

The actions primarily reflect a view that Travelport is facing increased refinancing risk associated with the outstanding $650 million payment-in-kind note at Travelport Holdings, S&P said.

This is because the agency said it does not anticipate that the company will secure adequate cash resources from operations to repay the payment-in-kind note at the time of maturity in early 2012.

The ratings continue to consider the seasonal and cyclical nature of the travel industry, coupled with Travelport's highly leveraged financial risk profile and limited access to capital, S&P said.

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