Moody's lowers Wyndham

Moody's Investors Service said it downgraded Wyndham Worldwide Corp.'s senior unsecured ratings to Ba2 and assigned a Ba1 corporate family rating and Ba1 probability of default rating.

The downgrade reflects Moody's concerns that Wyndham's earnings will drop and remain constrained for a more prolonged period relative to past economic downturns due to factors that continue to negatively impact consumer discretionary spending.

These include such things as high and rising unemployment, and depressed home and equity values, the agency said. Therefore, there is a distinct possibility that consumers will continue to cut back on travel services such as those provided by Wyndham, and that the company's earnings could remain at depressed levels into 2010.

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