S&P puts Travelport on watch

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

The CreditWatch placement is based on the Dec. 7 announcement that the travel distribution company has entered into a merger agreement with Worldspan LP (B/Watch developing), the agency said.

Travelport announced that it has loaned $250 million to Worldspan in exchange for payment-in-kind notes, consisting of $125 million through cash funded by one of Travelport's parent companies and $125 million through cash on hand., according to S&P.

The agency said that the combination of Travelport and Worldspan is expected to result in new revenue opportunities as well as $50 million of operating synergies for the combined entity.

However, the financial profile of the combined entity could be weaker than Travelport's current stand-alone financial profile, S&P said.

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