S&P rates Starwood notes BBB-

Standard & Poor's said it assigned a BBB- rating to Starwood Hotels & Resorts Worldwide Inc.'s proposed $400 million senior unsecured notes due 2013.

The outlook is stable.

Proceeds from the notes will be used to repay outstanding balances under Starwood's revolving credit facility.

The agency said Starwood's BBB- long-term corporate credit rating reflects the company's large, high-quality and geographically diversified hotel portfolio with many well-established brand names and S&P's expectation that Starwood will pursue an operating strategy and financial policy that balances share repurchases, dividends and growth investments.

These positive credit factors are partly tempered by the sensitivity of lodging demand to economic cycles and the company's exposure to the performance of its largest owned hotels, S&P said.

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