On Dec. 9, Accor announced its agreement to acquire Toronto-based FRHI Hotels&Resorts (FRHI)--the owner of the Fairmont, Raffles, and Swissotel brands--for $2.9 billion in cash and shares. In our view, the transaction will strengthen Accor's position in the luxury and upscale segments and will boost its presence in the key North American market. We see limited impact on Accor's financial risk profile, since the part-cash consideration is absorbed by improved headroom in Accor's metrics. We are affirming our 'BBB-' long-term and 'A-3' short-term corporate credit ratings on Accor. The stable outlook reflects our opinion that Accor will maintain a solid operating performance and a supportive financial policy. On Dec. 16, 2015, Standard&Poor's Ratings Services affirmed its
