S&P: Wyndham outlook negative

Standard & Poor's said it revised its outlook on Wyndham Worldwide Corp. to negative from stable and affirmed the BBB- corporate credit rating.

The agency said the negative outlook reflects lower-than-expected EBITDA generation in 2008 and 2009 and a meaningful increase in total lease-and-captive-finance adjusted debt balances over the intermediate term due to a decrease in the expected advance rate Wyndham would receive for selling its timeshare receivables.

The rating on Wyndham reflects the company's leading market positions in each of its business units and the stable cash flow characteristics of the lodging and RCI vacation network businesses, S&P said. The agency views Wyndham's business profile as investment grade, incorporating S&P's positive view of management as prudent business operators and a good level of business diversity.

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