Fitch: Starwood notes BBB

Fitch Ratings said it assigned a BBB rating to Starwood Hotels & Resorts Worldwide Inc.’s offering of $350 million unsecured notes due 2025 and $300 million unsecured notes due 2034.

The company has an issuer default rating of BBB, along with BBB ratings on its $1.75 billion senior unsecured credit facility and $2.1 billion of senior unsecured notes.

The outlook is stable.

The proceeds will be used for general corporate purposes, which may include the repayment of commercial paper, common-stock repurchases and the payment of previously announced special dividends, Fitch said.

The notes will be issued under Starwood’s existing indenture dated Dec. 10, 2012 and will be pari passu with existing and future unsecured obligations, the agency said.

Given no change in its financial policy, Fitch said it expects an increase in Starwood’s leverage toward its targeted range over time through share repurchases and common dividends, and possibly brand acquisitions if opportunities are present.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.