S&P boosts Host Hotels notes

Standard & Poor's said it raised its issue-level rating on Host Hotels & Resorts LP's senior secured notes and debentures to BBB-, two notches higher than the BB corporate credit rating on the company, from BB.

A recovery rating of 1 was assigned to these securities, indicating that lenders can expect very high recovery in the event of a payment default, the agency said, adding that the previous BB issue-level rating reflected criteria different from what it currently uses in its recovery analysis.

At the same time, the agency said it affirmed its other ratings on Host, including the BB corporate credit rating.

According to S&P, the rating reflects Host's aggressive financial profile and, as a real estate investment trust, its reliance on external sources of capital for growth while these factors are tempered by the company's high-quality and geographically diversified hotel portfolio of 117 owned hotels and over 60,000 rooms, high barriers to entry for new competitors because of its hotels' locations, its strong brand relationships, and its experienced management team.

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