S&P assigns RHP loans BB-

S&P said it gave BB- issue and 1 recovery ratings (90%-100%; rounded estimate: 95%) to RHP Hotel Properties LP’s planned $700 million revolving credit facility due 2027 and $375 million term loan due 2030. The agency also revised the outlook for parent Ryman Hospitality Properties Inc. to positive from stable.

The new ratings are consistent with those on RHP’s outstanding senior secured debt. The agency also affirmed Ryman’s B issuer rating and the B+ issue-level rating and 2 recovery rating on its senior unsecured debt.

Ryman plans to use the loans to refinance its outstanding revolver and term loan.

“The positive outlook reflects our expectation that Ryman will reduce its total lease-adjusted debt to EBITDA to about 5x as of the end of 2023. The company has already booked just under 50% of its 2023 occupancy through forward group bookings, which provide it with good occupancy visibility for the year, and we believe its guidance for a high-single-digit percent increase in its total RevPAR is plausible given the ongoing recovery in its portfolio occupancy,” S&P said in a statement.

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