S&P lowers Global Hyatt

Standard & Poor's said it lowered its corporate credit rating on Global Hyatt Corp. to BBB from BBB+ and removed it from Creditwatch, where it was placed with negative implications Nov. 19.

The outlook is negative.

"The downgrade reflects its expectation in 2009 for a significant decline in revenue per available room in Global Hyatt's U.S.-based hotel portfolio, and a material decline in RevPAR in many international markets where the company has a presence," said S&P credit analyst Emile Courtney.

"As a result, Global Hyatt is likely to sustain leverage above levels that we consider to be appropriate for the previous BBB+ rating."

In addition, in mid 2008, the agency said it stated its belief that the company might, over time, pursue a more aggressive financial policy of using debt to finance its growth objectives, and that we could lower the rating if the U.S. lodging industry weakened further.

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