S&P puts Travelport on negative watch

S&P said it placed the B+ rating on Travelport Worldwide Ltd. and its debt on CreditWatch with negative implications.

The CreditWatch follows news that Travelport has entered into a definitive agreement to be acquired by affiliates of private equity firms Siris Capital Group LLC and Evergreen Coast Capital Corp., a private equity affiliate of Elliot Management Corp.

The CreditWatch reflects the possibility of a downgrade when the transaction closes given a belief that financial leverage could increase substantially under the financial sponsor ownership, S&P explained.

This contrasts with a prior expectation that Travelport's leverage would decline toward 4x, from about 4.6x in 2017, the agency noted.

S&P also said it believes the company's financial policies are likely to become more aggressive under financial sponsor ownership.

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