S&P lowers Gaylord

Standard & Poor's said it lowered Gaylord Entertainment Co.'s corporate credit rating to B from B+ and its senior unsecured notes to B- with a recovery rating of 5 from B+ with a recovery rating of 4.

The ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, and the outlook is negative.

The agency said the downgrade reflects a very challenging lodging environment and the impact that the U.S. recession will have on Gaylord's group business over the intermediate term.

On its Tuesday earnings call earlier, Gaylord lowered its 2009 consolidated cash flow guidance to a range of $188 million to $213 million, which reflects a year-over-year decline of about 12%. S&P said it expects that the debt-to-EBITDA ratio could increase to the high 6 times area by the end of 2009, which reflects the agency's expectation that EBITDA could fall by about 20% in 2009 and that debt repayment in 2009 will be limited.

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