S&P upgrades Hilton Grand Vacations

S&P said it raised its ratings for Hilton Grand Vacations Inc. to BB from BB-, its senior secured debt to BBB- from BB+ and its unsecured debt to B+ from B.

“The upgrade reflects our expectation that leverage will remain around 3x over the next 12 months absent unanticipated M&A,” S&P said in a press release.

The agency noted HGV reported good contract sales growth through the first quarter of 2023 despite an 18% decline in volume per guest, which was counter-balanced by a 32% hike versus the same period in 2022 in tour flow.

“For the full year we expect VPG to decline 10%-15% offset by an approximate 10% increase in tour flow,” S&P said.

The outlook is stable.

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