S&P: Hilton outlook now stable

Standard & Poor's said it revised its outlook on Hilton Hotels Corp. to stable from negative.

S&P also affirmed its ratings on Hilton, including its BBB- long-term and A-3 short-term corporate credit ratings. S&P rates Hilton's senior unsecured debt at BBB-, its subordinated debt at BB+, its senior unsecured preliminary shelf registration at BBB- and its subordinated preliminary shelf registration at BB+.

S&P said the outlook revision considers the ongoing recovery of the U.S. lodging industry, and recognizes Hilton's commitment to improving its balance sheet over the last several years.

The ratings on Hilton reflect the size and breadth of its hotel portfolio, the quality of its urban and resort properties, strong national brand recognition, experienced management team and commitment to improving the balance sheet since its November 1999 acquisition of Promus Hotel Corp, according to S&P.

For the 12 months ended March 31, Hilton reported debt to EBITDA of 4.3x. S&P expects said it that by the end of 2004 this measure will be in the high-3x area, a level more in line with the ratings.

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