Fitch rates Wyndham loan BBB-

Fitch Ratings said it assigned a BBB- rating to Wyndham Worldwide Corp.’s $325 million senior unsecured term loan.

The term loan ranks pari passu with existing unsecured debt and matures March 24, 2021.

Fitch said it expects the transaction to be leverage-neutral as proceeds of the term loan, in part, were used to redeem $315 million of outstanding 6% senior notes due 2016.

The outlook remains stable.

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.

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