S&P rates Ryman loan BB

Standard & Poor's said it affirmed the B+ corporate credit rating on Ryman Hospitality Properties Inc.

The agency also said it assigned a BB rating with a recovery rating of 1 to Ryman's proposed $400 million term loan B due 2021.

The 1 recovery rating indicates an expectation for very high recovery for lenders in a payment default.

RHP Hotel Properties LP will be the issuer of the debt.

The outlook is stable.

The proceeds from the proposed term loan will be used to repay outstanding borrowings under its revolving current credit facility and to add cash to the balance sheet.

This is in anticipation of the repayment of its 3¾% convertible senior notes due October 2014 and settlement of related warrant transactions, S&P said.

The ratings reflect the company's limited asset diversity and small hotel portfolio, as well as the cyclicality in the lodging industry, the agency said.

Operating performance is expected to be strong in 2014, which will allow Ryman to reduce the leverage that this transaction adds, S&P said.

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