Fitch rates Starwood notes BB+

Fitch Ratings said it assigned a BB+ rating to Starwood Hotels & Resorts Worldwide Inc.'s up to $500 million of senior notes due 2014. The company has an issuer default rating of BB+.

The outlook remains negative.

Proceeds will be used to reduce the balance on its revolving credit facility, thereby increasing the company's liquidity.

The agency said Starwood's ratings are unaffected following its first quarter results that included reduced demand expectations for 2009.

Starwood's cost-cutting efforts have been partially offsetting the reduced demand, the agency noted.

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, Fitch added.

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