S&P could lift Orbitz

Standard & Poor's said it placed its ratings on Orbitz Worldwide Inc., including the B+ corporate credit rating, on CreditWatch with positive implications.

The CreditWatch placement follows Orbitz's announcement that it has entered into a definitive agreement to be acquired by Expedia Inc. Expedia will pay $12 per share for an enterprise value of about $1.6 billion. The transaction is subject to Orbitz's shareholder and regulatory approvals.

"Given the consolidation that has taken place in the online travel agency market, the U.S. government will likely take a closer look at the transaction," S&P credit analyst Jeanne Shoesmith said in a news release.

"However, we expect that the transaction will likely receive regulatory approval and that it will likely close in the second half of 2015."

With this acquisition, Expedia will obtain several well-known brands, including Orbitz, CheapTickets, ebookers and HotelClub. Expedia plans to fund the transaction with a combination of cash and debt issuance.

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