Travelport's financial state is back on a slightly steadier foot again with another influential agency upgrading the company's rating on the back of recent debt refinancing.
Moody's, the first of the big credit agencies to downgrade Travelport as concerns mounted over the repayment of the PIK (payment-in-kind) loan belonging to Travelport's holding company, has published a better outlook for the business this week.
The agency has upgraded Travelport from negative to stable, noting the company's near-term risk associated with the PIK being reduced following the announcement of the refinancing in late-September.
The upgrade comes two weeks after S&P, another of the so-called big three credit agencies, adjusted its position for the company, although said it still had concerns over the general liquidity of the business.
Moody's also still has concerns in the medium term. In a statement to analysts and investors, it says:
"At this time, Moody's believes that the company's liquidity remains satisfactory over at least a 12 month horizon, factoring in the existing cash balance, the Revolving Credit Facilities (RCF) and negligible near-term debt maturities.
"Nevertheless, the company's RCF have a final maturity in August 2013, in addition to $166 million in first lien term loans that mature the same month, which will need to be repaid or refinanced."
Meanwhile, Travelport also announced its first test partner in the US for its Universal Desktop platform.
Corporate travel management company Cain Travel joins a number of test partners for the Universal Desktop system, most recently a string of agencies in Asia.
The addition of the US pilot follows the long-term testing through Flight Centre over the past year and unveiling of business travel management company GTM in the UK as its first European partner.
Travelport is positioning the Universal Desktop (and the associated Universal API) as the next-generation tool to overhaul ageing travel agency desktop technology, its rival to Sabre’s Red and the Amadeus One systems.