Fitch assigns Hilton Grand BB-

Fitch ratings said it assigned ratings to Hilton Grand Vacations, Inc. and Hilton Grand Vacations Borrower LLC, including a BB-long-term issuer default rating.

The rating actions include the assignment of a BB+/RR1 rating to the company's senior secured debt, which includes a secured revolving facility and secured term loan, Fitch also gave a BB-/RR4 rating to its senior unsecured notes.

Fitch also gave expected ratings to HGV's proposed senior secured term loan facility of BB+/RR1 and to HGV's proposed senior unsecured debt BB-/RR4 associated with the acquisition of Diamond Resorts International.

“Fitch views HGV's increased scale and greater geographic diversification post acquisition as credit positives. The acquisition raises the company's EBITDA contribution from more recurring sources (club and resort management and consumer financing) to 50% from 40%. Diamond will double the size of HGV's ownership network to 720,000 and expand its resort count from 62 to 154 locations, including in new markets such as Arizona, New Mexico, Virginia, North Carolina, Tennessee and Canada,” the agency said in a press release.

The outlook is negative. The outlook reflects execution risk of the acquisition, given the near-term increase in leverage, and the pandemic’s effect on the travel and leisure sectors, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.