S&P: Orbitz on watch

Standard & Poor's said it placed its ratings on Orbitz Worldwide Inc., including the B corporate credit rating, on Creditwatch with negative implications

"The Creditwatch placement is based on the company's May 21, 2009 announcement that it is seeking an amendment to its $685 million credit agreement that would permit it to make open market purchases of this debt," said S&P credit analyst Betsy Snyder.

"If the amendment is approved and the company buys back bank debt at a material discount, the agency said it believes this could qualify as a distressed debt purchase under its criteria."

S&P added that ratings on Orbitz reflect the controlling stake in the company held by Travelport and affiliates of the Blackstone Group, one of the owners of Travelport Ltd.; an aggressive financial profile; and the seasonal and cyclical nature of the travel industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.