S&P may boost Orbitz

Standard & Poor's said it placed Orbitz Worldwide Inc.'s B corporate credit rating on CreditWatch with positive implications.

The positive watch reflects two factors. Affiliates of the Blackstone Group own about 54.9% (including Travelport's 47.5% stake) of Orbitz's common stock. On Jan. 19, the agency placed the B- issuer rating on Travelport on CreditWatch with positive implications, due to the planned $2 billion initial public offering. Travelport will use the proceeds to pay down debt.

The agency had said that a successful IPO would likely result in an upgrade of more than one notch.

"In the past, we equalized the ratings on Orbitz and Travelport due to the controlling stake that Blackstone affiliates hold," S&P analyst Betsy R. Snyder said in a statement.

"In addition, in the next few weeks, we expect Orbitz to add about $100 million of equity through two transactions: a $50 million exchange of debt for equity, and a $50 million contribution from Travelport," she continued.

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