Moody’s rates Wyndham loan Baa3, notes Ba2

Moody’s Investors Service said it assigned ratings to Wyndham Hotels & Resorts Inc. following its announced spin-off from Wyndham Worldwide Corp.

The assigned ratings include a Ba1 corporate family rating, Ba1-PD probability of default rating, Baa3 senior secured facility rating and Ba2 senior unsecured rating.

The agency also assigned an SGL-1 speculative grade liquidity rating.

The outlook is stable.

"The Ba1 corporate family rating reflects Wyndham Hotels' position as one of the largest hotel companies in the world, its stable and recurring earnings from its franchise-based business model and its focus on the economy and midscale segments of the lodging industry which are generating higher revenue per available room (RevPAR) growth than other segments," Pete Trombetta, Moody's lodging analyst, said in a news release.

"The ratings also reflect the company's leverage of about 4.0x which is relatively high for a Ba1 rated company as well as its concentration in two brands which account for about 45% of its total hotel rooms.”

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