U.K.-based hotelier InterContinental Hotels Group PLC (IHG) plans to pay a $1 billion extraordinary shareholder return (comprising a $500 million extraordinary dividend and a $500 million share buyback program). In our view, the extraordinary shareholder return is likely to weaken IHG's credit metrics, but we anticipate that under our base-case scenario they will remain commensurate with the current rating. We are therefore affirming our long-term corporate credit rating on IHG at 'BBB'. The stable outlook reflects our view that IHG's credit measures will remain in line with the 'BBB' rating. On Aug. 9, 2012, Standard&Poor's Ratings Services affirmed its 'BBB' long-term corporate credit rating on U.K.-based hotelier InterContinental Hotels Group PLC (IHG). The outlook is stable. The affirmation
