Moody's affirms Gaylord

Moody's Investors Service said it affirmed Gaylord Entertainment Co.'s B3 corporate family and probability of default ratings and Caa2 senior unsecured rating.

Moody's said the confirmation follows the company's announcement that it signed an agreement to sell the Gaylord brand and rights to manage its four hotels to Marriott International Inc.

Gaylord's stable rating outlook and SGL-3 speculative grade liquidity rating also remain unchanged.

The affirmation considers that, despite a steady improvement in Gaylord's operating performance and debt protection metrics to a level Moody's believes could warrant a higher rating, there is a uncertainty with respect to costs, liquidity requirements and ultimate capital structure that could be in place assuming Gaylord is successful in converting to a real estate investment trust, the agency said.

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