Moody's rates Ryman debt B1

Moody's Investors Service said it assigned a Ba3 corporate family rating to Ryman Hospitality Properties, Inc. and a B1 senior rating to the proposed debt offering currently being marketed by Ryman Hotel Properties, LP. The outlook is stable.

This is the first time Moody's has rated Ryman Hospitality, formerly known as Gaylord Entertainment Co.

The agency said the Ba3 corporate family rating reflects Ryman's profitable portfolio of four large, group-oriented hotels with resort-style amenities, its plans to grow through acquisitions and joint ventures rather than ground-up development of additional large-scale properties and its conservative credit profile with 29.3% effective leverage, a 3.8 times net debt-to-EBITDA ratio and 4.1 times fixed charge coverage ratio at the end of 2012.

Counterbalancing these strengths, Ryman has no unencumbered assets since substantially all of its assets are pledged to the senior secured credit facility, it has significant asset concentration, all of its assets are managed by one hotel operator (Marriott), and it has $360 million of convertible notes maturing in October 2014, Moody's said.

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