S&P: Wyndham on watch

Standard & Poor's said it placed its ratings for Wyndham Worldwide Corp., including the BBB corporate credit rating, on CreditWatch with negative implications.

The CreditWatch listing follows Wyndham's announcement that it plans to purchase the economy-segment Microtel Inns & Suites and the mid-scale extended-stay Hawthorne Suites brands from a subsidiary of Global Hyatt Corp., the agency noted.

The purchase price was not disclosed, S&P said, noting that while the brand acquisitions are a good strategic fit for Wyndham, the announcement comes at a time when Wyndham's leverage profile is higher than its comfort level at the current rating level.

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