S&P lifts Orbitz, rates loan BB-

Standard & Poor's said it raised the corporate credit rating on Orbitz Worldwide Inc. to B+ from B.

The agency also said it assigned a BB- to the company's proposed credit facility with a recovery rating of 2, indicating 70% to 90% expected default recovery.

The proposed credit facility consists of a $75 million revolving credit facility due 2019 and a $450 million term loan B due 2021.

The outlook is stable.

The ratings reflect an expectation that the company's operating performance will remain steady despite significant competitive pressure from larger peers, S&P said.

The ratings also consider its solid competitive position in the United States, good brand recognition and growing consumer preference for booking travel services online, the agency said.

Travel demand is cyclical and seasonal, S&P said, and can fluctuate with shocks such as natural disasters and geopolitical incidents.

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