S&P rates Host Hotels debentures BB+

Standard & Poor's said it assigned Host Hotels & Resorts LP's proposed $300 million of exchangeable senior debentures due 2029 its BB+ issue-level rating, two notches higher than its BB- corporate credit rating on the company.

The agency said it also assigned this debt a recovery rating of 1.

The company will use proceeds from the proposed notes issuance primarily to repay debt, S&P added, noting that an overallotment of $60 million of the exchangeable senior debentures may be offered if the right is exercised by purchasers, although the increase in the issuance size would not affect the rating assigned to the notes.

The corporate credit rating on parent company Host Hotels & Resorts Inc. is BB- and the outlook is negative, S&P said, adding that the rating reflects Host's highly leveraged financial risk profile, reliance on external sources of capital for growth as a real estate investment trust, the current down cycle and the generally cyclical nature of lodging, and industrywide susceptibility to global political events.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.