Fitch rates Host Hotels notes BBB

Fitch Ratings said it assigned a BBB rating to the $500 million unsecured notes issued by Host Hotels & Resorts LP. The tenor of the notes is 10 years.

“Host has reduced its leverage (net debt/recurring operating EBITDA) to 1.6x for the TTM period ending Dec. 31, 2018 from its prior-cycle peak of 5.8x. Fitch expects Host to target leverage in the 2.5x to 3.0x range through the cycle, which is a key ratings consideration,” the agency said in a press release.

Proceeds are expected to be used toward the paydown of the company’s series Z and B unsecured notes that mature in 2021 and 2022, respectively. It also plans to use a portion of the proceeds for eligible green projects.

The outlook is stable.

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