Moody's: Orbitz outlook stable

Moody's Investors Service said it affirmed the B2 corporate family rating for Orbitz Worldwide, Inc. and revised the outlook to stable from negative.

The agency upgraded the speculative-grade liquidity rating to SGL-2 from SGL-3 and the probability-of-default rating to B2 from B3.

Orbitz has B2 ratings (LGD3, 47% from 31%) for its secured term loan and revolving credit facility.

The upgrades reflect Orbitz' improved liquidity profile primarily due to the company's debt and equity transactions with PAR Investment Partners and Travelport, respectively, completed in January, according to the agency.

The revision of the outlook is based on expectation that the travel industry will resume some growth in 2010, the agency said.

Orbitz's B2 corporate family rating reflects the company's strong online franchise and recognizable global brand, solid position in the consumer online travel services market and moderate financial leverage following completion of the aforementioned debt and equity transactions, the agency noted.

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