THE MCGRAW-HILL COMPANIES INC ("MHP-BHDNPX3") - Starwood
Hotels &
Resorts Worldwide Inc. 'BB' Corporate - Credit Rating Affirmed; New Senior Notes Rated 'BB'
--We are assigning our 'BB' issue-level senior rating to Starwood's proposed $250 million senior notes due 2019.
--We are also affirming all other ratings, including the 'BB' corporate credit rating, on the company.
--The stable outlook reflects our view that our rating assumptions sufficiently incorporate weakness in Starwood's financial performance in 2009 and 2010.
NEW YORK, Nov. 5, 2009--Standard & Poor's Ratings Services said it assigned its 'BB' issue-level rating (the same as the 'BB' corporate credit rating) and its '3' recovery rating to Starwood
Hotels &
Resorts Worldwide Inc.'s proposed $250 million senior notes due 2019. The '3' recovery rating reflects our expectation that lenders would achieve meaningful (50% to 70%) recovery in a simulated payment default scenario. Proceeds from the proposed notes issue will be used to repay debt balances.
In addition, we affirmed all ratings on the company, including the 'BB' corporate credit rating. The outlook is stable.
"The rating reflects," said Standard & Poor's credit analyst Emile Courtney, "the sensitivity of demand for Starwood's
hotels to economic cycles, the company's exposure to its largest owned
hotels and to upper upscale and luxury
lodging segments, and its aggressive share repurchases in the period leading up to the current downturn." The combination of the significant current down cycle and a high level of share repurchase activity in 2007 and 2008 is likely to result in meaningfully higher leverage at Starwood over the intermediate term. The company's large, high-quality, and geographically diversified
hotel portfolio with many well-established brand names--which position Starwood well for the eventual recovery--partially offset those factors.
Media Contact:
Mimi Barker, New York (1) 212.438.5054,
mimi_barker@standardandpoors.com
Analyst Contact:
Emile Courtney, CFA, New York (1) 212-438-7824
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_
relations@standardandpoors.com
Americas Customer Service: (1) 212-438-7280
research_request@standardandpoors.com
Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for nearly 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit
www.standardandpoors.com.
______________________________________
_______________________________________________
____________________________________________________________
(c)2009 Market News Publishing Inc. All rights reserved. Toronto:(416)366-8881 Vancouver:(604)689-1101 Fax:(604)689-1106
and Directories
HOME