Fitch rates Travelport loans B+

Fitch Ratings said it assigned Toro Private Holding I Ltd.’s (Travelport) new priority first-lien loans a senior secured rating of B+, and upgraded first-lien loans to CCC- from C, resolving the rating watch positive. Upon its recent debt exchange transaction, the second-lien notes have been terminated, and the rating, C/RR6, was withdrawn.

Fitch also downgraded Travelport’s issuer default rating to RD from C and then upgraded it to CCC+. The CCC+ is based on completing its recent debt exchange, business prospects and new capital structure, the agency said.

“The B+ rating of the new priority first-lien loans, three-notches above the IDR, reflects the new lien’s structural features such as their priority and small size, which in a hypothetical event of default, would provide outstanding recoveries (RR1) under our recovery analysis. The CCC- rating of the remaining first-lien loans, two-notches below the IDR, is indicative of the structural subordination to the new priority lien, reducing recovery prospects under our analysis to poor (RR6) from average (RR4),” Fitch said in a press release.

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