S&P gives Marriott notes BBB+

Standard & Poor's said it assigned its BBB+ rating to Marriott International Inc.'s proposed $350 million series I notes due 2017.

Net proceeds are expected to be used to repay $300 million of the company's outstanding commercial paper borrowings and for general corporate purposes, including working capital, capital expenditures, acquisitions and stock repurchases, the agency said.

S&P said it corporate credit rating on Marriott is BBB+/stable/A-2, noting that the BBB+ rating reflects the company's strong business profile as exhibited by its sizable and good quality system of hotels, its ownership of well-known lodging brands that target multiple price points, although primarily upscale, its leadership position in timeshare, its experienced management and its focus on managing and franchising hotels rather than outright ownership.

These factors are tempered by the cyclical nature of the lodging industry and the susceptibility of the travel and leisure industry to global political events, the agency said.

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