Moody's confirms Worldspan ratings

Moody's Investors Service said it confirmed Worldspan's B1 guaranteed secured bank credit facility rating, B2 guaranteed senior note rating, and Caa1 subordinated note (seller notes) rating.

The outlook is positive.

Moody's said the confirmation reflects: 1) the successful resolution of a contract dispute between Worldspan and Orbitz related to service levels, 2) Worldspan's leading market position as an online global distribution system (GDS) services provider, 3) the essential nature of GDS services to the airlines as the primary mechanism for travel distribution, and 4) Worldspan's partnership relationships with major airlines and online travel agencies.

The rating confirmation also reflects credit challenges related to Worldspan's: 5) high customer concentration, 6) aggressive capital structure, which contributes to high debt leverage, 7) modest cash position and reliance on revolving credit facilities with tight financial covenants, and 8) the financial duress of Worldspan's airline customer base.

© 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.