S&P rates Host Marriott notes B+

Standard & Poor's said it assigned its B+ rating to Host Marriott LP's proposed $350 million senior notes due 2012.

Proceeds from the notes will be used to redeem a portion of Host Marriott LP's existing 7.875% senior notes due 2008.

S&P also affirmed its ratings, including its B+ corporate credit rating, on Host Marriott Corp.

The outlook is stable.

S&P said the ratings reflect the company's substantial debt levels, with operating lease-adjusted debt to EBITDA in the mid-7x area.

However, S&P said it expects an improvement in Host's credit measures to result from a healthier operating environment and management's focus on improving the balance sheet. The ratings also consider the high quality of the company's hotels, the geographic diversity of its portfolio and its experienced management team.

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