Host Marriott Corp.'s financial policy was re-evaluated in light of the company's upcoming REIT conversion, acquisition of Blackstone hotels and alliance with other quality hotel operators, and recapitalization. Management has committed to reduce debt leverage further, and is greatly simplifying its complex corporate structure. Reduced financial flexibility, as a result of the REIT dividend requirement, is mitigated by Host's monetizable asset base, large funds from operations (FFO) base, and available credit lines. The ratings anticipate that the company will issue at least $1 billion of additional unsecured debt in the first quarter of 1999, which will refinance the assumed secured Blackstone debt and the maturing Marriott Marquis debt. The $1.4 billion of notes will be issued by wholly owned subsidiary
