S&P rates Wyndham Hotels notes B+

S&P said it assigned its B+ issue-level rating and 6 recovery rating to the proposed senior unsecured notes due 2028 to be issued by Wyndham Hotels & Resorts Inc.

S&P said it assumes the issuance amount is at least $350 million.

The ratings on the proposed notes are the same as those on existing unsecured debt issued by Wyndham. The 6 recovery rating reflects an expectation of negligible (0%-10%; rounded estimate: 0%) recovery for unsecured lenders in the event of a payment default.

“We assume the proposed debt issuance does not affect our forecast of net debt or leverage because the company intends to use proceeds to repay amounts drawn on the revolving credit facility and accrue to the balance sheet as precautionary, long-term liquidity,” S&P said in a news release.

The BB issuer credit rating, negative outlook, and all other ratings on Wyndham are unchanged.

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