Moody's: Hyatt notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Hyatt Hotels Corp.'s proposed $500 million five-year and 10-year senior note offering and affirmed its existing Baa2 senior unsecured ratings.

The proceeds will be used for general corporate purposes, which may include financing for the anticipated closing of the previously announced LodgeWorks LP acquisition, Moody's said.

The ratings reflect Hyatt's strong liquidity, well-known brand portfolio, solid credit metrics and an expectation that the company's conservative financial management will continue, the agency said.

The ratings are constrained by the high degree of earnings volatility through economic cycles due to its concentration in owned hotels in the upscale lodging segment, Moody's said.

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