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 notes due 2018 and to the $200 million add-on to its senior notes due 2013. All other ratings for the company, including the BBB- corporate credit rating, were affirmed.

The outlook is stable.

Proceeds will be used to reduce outstanding borrowings under Starwood's revolving credit facilities.

The agency said the rating on Starwood reflects the company's large, high-quality and geographically diversified hotel portfolio with many well-established brand names and its policy of balancing share repurchases, dividends and growth investments to maintain an investment-grade financial profile over the lodging cycle.

These positive credit factors are partly tempered by aggressive share repurchase activity over the last few years, 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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