Moody's drops Starwood

Moody's Investors Service said it downgraded Starwood Hotels & Resorts Worldwide, Inc.'s senior unsecured ratings to Ba1, and assigned a Ba1 corporate family rating and Ba1 probability of default rating.

"The downgrade reflects Moody's expectation of a deeper and more prolonged downturn in travel demand that will cause Starwood's credit metrics to remain outside levels appropriate for the former rating category," stated Peggy Holloway, senior credit officer at Moody's.

Moody's added that it anticipates revenue per available room in 2009 could drop about 17% before stabilizing later in 2010. As a result, Starwood's debt/EBITDA could rise slightly above 4.5 times.

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