Moody's rates Orient-Express loans B3

Moody's Investors Service said it assigned a B3 corporate family rating, a B3-PD probability of default rating and an SGL-2 speculative grade liquidity rating to Orient-Express Hotels Interfin, Ltd. and B3 (LGD3, 49%) ratings to its proposed $550 million senior secured term loans due 2021 and $105 million senior secured revolving credit facility due 2019. The outlook is stable.

Proceeds will be used to refinance the company's outstanding debt and for general corporate purposes.

The agency said the B3 corporate family rating reflects Orient-Express' very small scale in term of revenues and number of hotel rooms versus other hotel operators, weak credit metrics, earnings concentration and seasonality as well as its concentration in the luxury segment of the hotel industry.

In Moody's view, the ratings are supported by the geographic reach of Orient-Express' individual properties and assets, the benefit from non-hotel assets that diversify earnings, its good liquidity and the expected benefits of its property renovations and brand migration that should drive improved operating performance and the customer recognition of its individual properties.

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