S&P: Orbitz view to negative

Standard & Poor's said it revised the outlook on Orbitz Worldwide Inc. to negative from stable.

The company's ratings, including its B corporate credit rating, were affirmed.

Affiliates of the Blackstone Group LP and Travelport LLC own 55% of Orbitz's common stock, S&P said.

The outlook revision mainly reflects a concern that the financial problems of Travelport could adversely affect Orbitz's credit metrics, S&P said.

The outlook revision also is based on significant refinancing risk associated with its $650 million pay-in-kind notes due in March 2012 and an expectation of a narrow margin of compliance with covenants over the next several quarters, the agency said.

S&P said it doesn't anticipate that Travelport will secure adequate cash resources from operations to repay the PIK note at the time of maturity in early 2012.

The ratings reflect an expectation that the company's performance will gradually improve along with the travel industry and that liquidity will remain adequate over the medium term, the agency said.

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