Fitch rates Wyndham notes BBB-

Fitch Ratings said it expects to assign a BBB- to Wyndham Worldwide Corp.’s proposed issuance of $350 million of senior unsecured notes.

The outlook is stable.

The 10-year notes will rank pari passu with Wyndham’s existing unsecured notes and credit facility, the agency said.

Fitch said it expects the issuance to be completed on a leverage-neutral basis with the company using the proceeds to pay-down its outstanding commercial-paper.

The ratings reflect Wyndham’s strong free cash flow profile, the majority of which is made up of recurring fee income generated by its lodging, vacation exchange and rental and timeshare segments, the agency said.

The ratings also consider management’s public commitment to maintain low investment-grade credit metrics, Fitch said.

The stable outlook reflects an expectation that the company will continue to operate within a target adjusted leverage of 3.25x, the agency said.

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