S&P lifts Host Marriott view to positive

Standard & Poor's said it revised its outlook on Host Marriott Corp. to positive from stable.

At the same time, the agency said it affirmed its ratings, including its B+ senior unsecured bank loan, CCC+ preferred and B+ corporate credit ratings.

The outlook revision reflects Host's progress during the past several quarters in improving credit measures through a combination of earnings growth and modest debt reduction, S&P said.

The ratings on Host reflect its highly leveraged financial profile and, as a real estate investment trust, its reliance on external sources of capital for growth, the agency added, stating that these factors are tempered by Host's high quality and geographically diversified hotel portfolio, high barriers-to-entry for new competitors in most of its urban and resort markets, strong brand relationships, an experienced management team and the expectation that management remains intent on strengthening the balance sheet from current levels.

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