S&P assigns BB to Ryman Hospitality notes

Standard & Poor's said it affirmed its B+ corporate credit rating on Ryman Hospitality Properties Inc. The outlook is stable.

At the same time, S&P assigned Ryman's proposed $300 million senior unsecured notes due 2021 a BB issue-level rating, with a recovery rating of 1, indicating an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default.

The notes are being co-issued by Ryman's wholly owned subsidiaries RHP Hotel Properties LP and RHP Finance Corp. Parent Ryman Hospitality Properties Inc. and its operating subsidiaries guarantee the notes.

The company expects to use the proceeds from the proposed notes issuance to repay a portion of its outstanding borrowings under its current credit facility and pay fees and expenses related to the transaction.

"Our corporate credit rating on Ryman Hospitality Properties Inc. reflects our assessment of the company's business risk profile as 'weak' and our assessment of the company's financial risk profile as 'aggressive,'" S&P said in a news release.

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