Moody’s lifts Sabre, loans to Ba2

Moody's Investors Service said it upgraded Sabre Holdings Corp.’s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and the ratings for the senior secured credit facilities and notes at Sabre's wholly-owned subsidiary, Sabre GLBL Inc., to Ba2 from Ba3.

The agency affirmed Sabre's SGL-2 speculative grade liquidity rating.

The outlook is stable.

"The upgrade reflects our expectations that Sabre's strong earnings growth and balanced financial policies will result in a stronger credit profile," Moody's analyst Raj Joshi said in a news release.

The agency expects Sabre's total debt to EBITDA (Moody's adjusted, including amortization of upfront incentive consideration) to decline from 4.2 times at year-end 2015 to near 3 times over the next 12 to 18 months from solid growth in adjusted EBITDA.

In addition, Sabre's free cash flow should increase from 4% of its adjusted total debt in 2015, to about 6% to 7% over the next 12 to 18 months.

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