S&P cuts Hilton to BB

S&P said it downgraded Hilton Worldwide Holdings Inc. and its senior unsecured debt to BB from BB+. The agency affirmed the BBB- rating on the senior secured debt at BBB-.

“The downgrade to BB reflects a spike in leverage in 2020 and a more difficult path for Hilton Worldwide Holdings Inc. to reduce leverage to below the 5x threshold at the previous BB+ rating. The lodging and leisure sector faces an unprecedented coronavirus-related decline in revenue, and it will continue to see declines for as long as travel, consumer, and business activities are restricted,” the agency said in a press release.

The outlook is negative.

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