S&P gives B+ to Xenia Hotels notes

S&P said it assigned a B- issuer credit rating to Xenia Hotels & Resorts Inc. and a B+ issue-level rating and 1 recovery rating to XHR LP's proposed senior secured notes. The 1 recovery rating indicates an expectation for very high (90%-100%; rounded estimate: 95%) recovery for lenders in a hypothetical default scenario.

The outlook is stable.

“The B- rating reflects our forecast for very high leverage in 2020 and the company's significant operating uncertainty, which could lead it to sustain leverage of close to 10x in 2021 even under a recovery scenario,” S&P said in a news release.

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