Moody's upgrades Travelport to B2

Moody's Investors Service said it upgraded Travelport Ltd.'s corporate family rating to B2 from B3, affirmed its B3-PD probability of default rating and affirmed the B2 ratings assigned to Travelport Finance (Luxembourg) Sarl’s $2.4 billion first-lien loan facility and $100 million revolving credit facility. This concludes the review for upgrade that began Sept. 16, and the outlook is stable.

The rating action follows the completion of the initial public offering of Travelport’s parent company, Travelport Worldwide Ltd. Proceeds will be applied toward the redemption of debt and other liabilities. The agency said the company's reduced debt levels will further strengthen free cash flow generation as interest costs diminish.

Travelport's B2 corporate family rating continues to reflect the company's high leverage, which Moody’s expects to be around 5.7 times pro forma for the IPO; an overall high degree of business risk and some degree of customer concentration, the agency said.

Moody’s said these factors are balanced to some extent by Travelport's leading position as a global distribution services provider, diversified customer base and geographical footprint.

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