Further bad news for Travelport with ratings agency Moody’s downgrading the company’s debt rating. It made the call after a first half fall in Travelport’s operating profit and said “the outlook remains negative” in a client note. Moody’s believes Travelport may have issues paying off its massive US$3.2 billion debt.
It downgraded Travelport from B3 to Caaa1. This means future debt will be even more expensive. To put this in context, consider the fear generated when the US Government was downgraded from AAA to AA+ by Standard and Poor’s. Also see: Debt and Rising Costs Impact Travelport Performance.