Moody’s lowers Wyndham Hotels senior secured rating

Moody’s Investors Service said it downgraded Wyndham Hotels & Resorts’ senior secured debt rating to Ba1 from Baa3.

“The downgrade of the senior secured bank credit facility rating to Ba1 reflects the high level – more than 80% of secured debt in the capital structure relative to unsecured debt per Moody's loss given default methodology. This high level of secured debt – consisting of a $750 million revolving credit facility and a $1.5 billion secured term loan B – in the capital structure mix reduces the level of recovery in a default scenario,” Moody’s said in a press release.

Moody’s also revised the outlook to negative from under review. “The negative outlook reflects our view that a delay in the lifting of travel restrictions could continue to pressure Wyndham Hotels' earnings into 2021 and possibly slow its return to debt/EBITDA below 4.x,” said the agency.

Moody’s affirmed the company’s Ba1 and Ba1-PD probability of default rating as well as the senior unsecured bond rating at Ba2.

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