S&P cuts Ryman Hospitality

S&P said it downgraded Ryman Hospitality Properties Inc. to B-, citing a forecast for a slow recovery in group travel. At the same time, the agency lowered the senior secured rating to B+ from BB- and the senior unsecured rating to B from B+.

“The downgrade reflects our lowered base case assumption for Ryman’s revenue and EBITDA because we believe group travel will not begin to recover until 2021, causing leverage to be very high and interest coverage to be very thin through 2021. We expect the company’s leverage to spike very high in 2020 because it generated near-zero revenue while its properties were closed,” S&P said in a press release.

Under a revised base case, S&P said it forecasts Ryman’s lease-adjusted leverage could remain a bit below 9x in 2021 even if its group business can recover and total revenue per available room (RevPAR) is about 20% below 2019.

The outlook is negative.

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