Moody's eyes Wyndham Hotels for downgrade

Moody's Investors Service said it placed the ratings of Wyndham Hotels & Resorts on review for downgrade including its Ba1 corporate family rating, Ba1-PD probability of default rating, Baa3 senior secured rating and Ba2 senior unsecured rating. At the same time, Moody's downgraded the company's speculative grade liquidity rating to SGL-2 from SGL-1.

"The review for downgrade is prompted by earnings pressure Wyndham Hotels will face in 2020 as travel restrictions being put in place across the U.S. related to the spread of the Covid-19 coronavirus cause significant declines in occupancy and revenue per available room (RevPAR)," stated Pete Trombetta, a Moody's lodging and cruise analyst, in a press release. "Wyndham Hotels' leverage will increase to well above its downgrade trigger of 4x, but the company's liquidity is adequate to get the company through this period of earnings pressure."

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