S&P rates Hyatt notes BBB

Standard & Poor's said it assigned Hyatt Hotel Corp.'s proposed $350 million senior notes due 2023 its BBB issue-level rating.

Hyatt plans to use the proceeds to redeem existing notes due 2015 in whole and to redeem tendered notes in 2019.

All other ratings, including the BBB corporate credit rating, are unchanged.

The outlook is stable.

S&P said the corporate credit rating on Hyatt reflects its assessment of the company's business risk profile as "satisfactory" and its financial risk profile as "intermediate."

The agency's assessment of Hyatt's business risk profile as satisfactory is based on its high-quality hotel portfolio, its well-respected Hyatt brand name and its geographic diversification.

The cyclical nature of the lodging industry, the company's exposure to the performance of its owned hotels and the expectation for the company to maintain an active growth strategy temper these positive factors, S&P added.

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