S&P affirms InterContinental Hotels

Standard & Poor's said it affirmed the BBB long-term corporate credit rating on InterContinental Hotels Group plc.

The outlook is stable.

The affirmation follows news that the company plans to pay a $1 billion extraordinary shareholder return comprised of a $500 million extraordinary dividend to shareholders in 2012 and a $500 million share buyback program, which will begin in the fourth quarter of 2012, S&P said.

The company will fund this outflow partly through asset disposals, such as the sale of the Barclay Hotel in New York and, above all, through higher drawings on the company's revolving credit facility.

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