Moody's rates Orbitz loan B2

Moody's Investors Service said it rated Orbitz Worldwide, Inc.'s proposed $450 million first-lien credit facility B2 and affirmed the B2 corporate family rating.

The speculative-grade liquidity rating was lowered to SGL-3 from SGL-2.

The outlook remains stable.

According to Moody's, proceeds from the proposed $400 million of term loans, along with cash on hand, will be used to refinance Orbitz's existing term loan. The new $50 million revolver is expected to be undrawn at closing with about $5 million of letters of credit reducing availability.

The downgrade in Orbitz's liquidity rating to SGL-3 from SGL-2 reflects a smaller revolver commitment post-refinancing and limited financial flexibility over the next four quarters, the agency noted.

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