S&P rates Marriott Vacations preferred stock B-

Standard & Poor's said it assigned its preliminary BB- corporate credit rating to Marriott Vacations Worldwide Corp.

Marriott International Inc. plans to spin off timeshare subsidiary Marriott Vacations by the end of 2011, at which time S&P will assign its final ratings, the agency said in a news release.

The outlook is stable.

At the same time, S&P said it assigned its preliminary B- preferred stock rating to subsidiary Marriott Vacations Worldwide US Holdings Inc.'s proposed $40 million cumulative and mandatorily redeemable preferred stock issue.

"The rating reflects MVW's weak business risk profile, which requires external financing to fund lending to customers in the company's capital-intensive and competitive timeshare business," said S&P credit analyst Emil Courtney in a news release.

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