Moody’s rates Marriott loan Baa3, notes Ba3

Moody's Investors Service said it assigned ratings to Marriott Ownership Resorts, Inc., a subsidiary of Marriott Vacations Worldwide Corp., including a Ba2 corporate family rating.

The agency also assigned a Ba2-PD probability of default rating, a Baa3 senior secured bank facility rating, a Ba3 senior unsecured note rating and an SGL-2 speculative grade liquidity rating.

The outlook is stable.

"The assignment of a Ba2 corporate family rating, following the company's announcement that it has entered into an agreement to acquire ILG (Interval Acquisition Corp., Ba2 RUR-down), reflects its exposure to the timeshare industry which Moody's views as a higher risk segment of the hospitality industry," Pete Trombetta, Moody's lodging analyst, said in a news release.

"The rating also takes into consideration the combined company's portfolio of quality brands, its position as the second largest timeshare company in terms of revenue and number of owners, and the stability of its timeshare exchange segment."

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