S&P rates Wyndham Destinations notes BB-

S&P said it assigned a BB- rating to $300 million of senior secured notes due 2030 with a 3 recovery rating Wyndham Destinations Inc. plans to sell.

Proceeds will be used to repay revolver borrowings.

S&P affirmed the BB- rating on the company and its senior secured notes. “We affirmed the rating despite our base-case forecast for leverage below 4.5x because we believe good cushion is needed to accommodate future volatility and opportunistic acquisitions. We expect that Wyndham Destinations Inc. can reduce our measure of lease and captive finance adjusted debt to EBITDA to the low-4x area in 2019 and to around 4x in 2020, which are below our 4.5x upgrade threshold for a one-notch higher BB issuer credit rating,” said S&P in a press release.

The outlook is positive.

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