Moody's downgrades Hyatt

Moody's Investors Service said it downgraded the senior unsecured rating of Hyatt Hotels Corp. to Baa3 from Baa2. At the same time, Moody's placed the company's ratings on review for further downgrade.

"The downgrade reflects the material earnings decline Hyatt will experience in 2020 due to travel restrictions being put in place across the U.S. related to the spread of the Covid-19 coronavirus which will cause the company's leverage to increase to well above its downgrade trigger of 3.5x," stated Pete Trombetta, a Moody's lodging and cruise analyst, in a press release.

"Occupancy and revenue per available room (RevPAR) in the U.S. fell significantly over the past two weeks and are expected to remain weak until the travel restrictions are lifted. The company's ability to bring its metrics back to historic levels will be delayed by our expectation for a prolonged recovery," added Trombetta.

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