Moody's assigns Baa2 to IHG

Moody's Investors Service said it assigned a Baa2 long-term local- and foreign-currency issuer ratings to InterContinental Hotels Group plc.

"The Baa2 rating reflects the company's solid credit metrics supported by a conservative financial policy and a franchise business model that underpins strong and growing earnings and resilient cash generation," said Ramzi Kattan, a Moody's vice president, senior credit officer and lead analyst for IHG, in a statement.

Moody's said it forecasts company-adjusted EBITDA to further grow over the next 18 months, reaching about $1.05 billion in 2023 and $1.125 billion in 2024. The agency also estimates earnings growth to be supported by a 4%-4.5% increase in the number of rooms and a continued recovery in occupancy. For all regions, Moody's projects growth in average daily rate of 2.5%-3% in 2023, before slowing down to around 1% in 2024.

The outlook is stable.

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