Moody's rates Ryman loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed $400 million senior secured term loan B being marketed by RHP Hotel Properties LP, a subsidiary operating partnership of Ryman Hospitality Properties, Inc. The agency also affirmed Ryman's corporate family rating at Ba3 and RHP's senior unsecured debt at B1. The outlook remains stable.

The proceeds from the proposed term loan B will be used to repay the outstanding balance on Ryman's secured revolver and increase cash balances in anticipation of settling its convertible notes due October 2014 as well as the cash repurchases of the warrants.

The agency said the ratings reflect Ryman's profitable portfolio of four large, group-oriented hotels with resort-style amenities and its sound credit profile, which includes a net debt-to-EBITDA ratio of 4.2 times.

In Moody's view, Ryman's key credit challenges remain its limited amount of unencumbered assets and its significant asset concentration.

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