Hyatt Hotels Corp.'s Senior Unsecured Notes Rated 'BBB'

NEW YORK (S&P Global Ratings) Aug. 7, 2018-- S&P Global Ratings today assigned its 'BBB' issue-level rating to Hyatt Hotels Corp.'s proposed $400 million senior unsecured notes due 2028. Hyatt may use the proceeds from the notes issuance to redeem its $196 million senior notes due 2019, repay other secured debt, and for other general corporate purposes, which could include share repurchases or acquisitions. As a result, the transaction could add modest leverage. However, Hyatt currently has significant leverage capacity compared with our 3x downgrade threshold, with our measure of lease adjusted debt to EBITDA at 1.5x as of June 2018. Our current base-case forecast is for this measure to be in the mid-1x area in 2018, assuming no acquisitions

...NEW YORK (S&P Global Ratings) Aug. 7, 2018-- S&P Global Ratings today assigned its '###' issue-level rating to Hyatt Hotels Corp.'s proposed $400 million senior unsecured notes due 2028. Hyatt may use the proceeds from the notes issuance to redeem its $196 million senior notes due 2019, repay other secured debt, and for other general corporate purposes, which could include share repurchases or acquisitions. As a result, the transaction could add modest leverage. However, Hyatt currently has significant leverage capacity compared with our 3x downgrade threshold, with our measure of lease adjusted debt to EBITDA at 1.5x as of June 2018. Our current base-case forecast is for this measure to be in the mid-1x area in 2018, assuming no acquisitions in the second half of 2018. This is because of a meaningful level of surplus cash that we net from debt balances. The company's '###' issuer credit rating and stable outlook are unchanged. RELATED CRITERIA + ARCHIVE - Criteria - Corporates - General:...

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