S&P cuts Sabre Holdings

Standard & Poor's said it lowered its ratings on Sabre Holdings Corp., including its corporate credit rating to BB from BBB.

Ratings remain on CreditWatch with negative implications, where they were placed on Dec. 12, following Sabre's announcement that it has signed a definitive agreement to be acquired by Silver Lake Partners and Texas Pacific Group for $5 billion, including the assumption of $550 million of net debt, according to the agency.

S&P added that the closing of the transaction is expected to occur by early in the second quarter of 2007 and it is anticipated that Sabre's 2011 and 2016 notes will remain outstanding.

The downgrade is based on the agency's conclusion that the acquisition is not only likely to increase Sabre's balance sheet debt but also to reduce its financial flexibility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.