Fitch drops Starwood to junk

Fitch Ratings said it downgraded Starwood Hotels & Resorts Worldwide Inc.'s issuer default rating, senior unsecured credit facility, senior unsecured term loans and senior unsecured notes to BB+ from BBB-.

The outlook remains negative.

The downgrade reflects the continued rapid deterioration in lodging operating trends since Fitch revised Starwood's outlook to negative on Dec. 5, according to the agency.

Ratings reflect Starwood's solid brands, quality assets, and substantial product and geographic diversification, the agency said.

Ratings also are supported by Starwood's solid free cash flow profile despite the significant industry and economic headwinds, the agency noted.

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