Moody's may downgrade Four Seasons

Moody's Investors Service said it placed the Baa3 senior unsecured ratings of Four Seasons Hotels, Inc. on review for possible downgrade following the announcement that Four Season's board of directors received a proposal to take the company private and has established a special committee to review the proposal. The proposal from Isadore Sharp (Four Seasons chairman and chief executive officer) and Triples Holdings Ltd. (Isadore Sharp's family holding company and the controlling shareholder of Four Seasons), together with Kingdom Hotels International and Cascade Investment, LLC, is valuing the company at $3.7 billion, including debt obligations.

The agency said its review will focus on the timing and success of the proposed transaction and the implications to current bondholders. In the event the transaction is not completed, the ratings could be negatively impacted if management pursues a more aggressive financial policy going forward.

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