S&P gives BB+ Hilton notes

S&P said it assigned its BB+ issue-level rating and 4 recovery rating to the proposed $750 million senior unsecured notes due 2030 issued by Hilton Worldwide Holdings Inc.'s wholly owned subsidiary, Hilton Domestic Operating Co. Inc.

S&P rated the proposed unsecured notes at the same level as the issue-level rating on Hilton's existing unsecured debt. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 35%) recovery for unsecured lenders in the event of a simulated payment default.

“We expect Hilton could consider to increase the size of the notes offering to repay additional term loan B debt, and we expect our rating on the notes will remain unchanged in the event the company increases the notes offering to as high as $1 billion. We also understand that the company will extend the maturity of its existing term loan B to 2026,” S&P said in a news release.

At the same time, S&P said it affirmed its BBB- issue-level rating on the senior secured debt issued by Hilton Worldwide Holdings' wholly owned subsidiary, Hilton Worldwide Finance LLC.

S&P also affirmed its BB+ issue-level rating on Hilton's existing senior unsecured notes. The 4 recovery rating remains unchanged.

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