Moody's gives Starwood bonds Baa3

Moody's Investors Service said it assigned a Baa3 rating to Starwood Hotels & Resorts Worldwide Inc.'s $400 million 10-year senior unsecured bonds.

The agency said that the company also increased the size of its Baa3 6¼% senior notes due 2013 by $200 million.

Starwood's existing ratings were affirmed, Moody's said, adding that the new notes will be issued from the company's existing debt shelf registration and proceeds from the new notes and the senior note add-on will be used to repay amounts outstanding under its revolving credit facility.

The outlook is stable.

Starwood's ratings reflects its solid market position, well-defined branding strategy, launch of its select service and extended stay franchise brands and growing development pipeline, the agency noted.

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