Sabre Holdings Corp. 'B' Rating Outlook Revised To Negative On Weaker Cash Flow; Incremental Term Loan Rated 'B'

OVERVIEW Standard&Poor's Ratings Services is revising its rating outlook on Sabre Holdings Corp. and Sabre Inc. to negative from stable based on weaker cash flow expected in 2013 and 2014 as well as weaker than expected operating performance. The corporate credit rating remains 'B'. We are assigning a 'B' issue level rating and '3' recovery rating to Sabre Inc.'s proposed $300 million incremental term loan due 2019. The company will use proceeds from the transaction to fund travel supplier liabilities and related deferred revenue at its Travelocity unit. The negative rating outlook reflects our expectation that the company will have discretionary cash flow deficits in 2013 and 2014 and somewhat limited ability to handle additional unexpected sizable uses

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