Moody's ups Wyndham, rates notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Wyndham Worldwide Corp.'s proposed $250 million senior unsecured notes due 2020. Moody's also upgraded its existing senior unsecured notes to Ba1 from Ba2. Its corporate family rating was affirmed at Ba1 and probability of default at Ba1.

The outlook is stable.

The upgrade reflects the anticipated repayment of Wyndham's $153 million secured foreign-credit facility by the end of the first quarter of 2010, Moody's said. The reduced level of secured debt relative to unsecured debt in the company's capital structure results in an improved recovery position for the unsecured creditors, the agency said.

Proceeds will be used repay existing debt, including the company's secured foreign revolving credit facility and a portion of its $300 million bank term loan, the agency said.

The ratings consider its leading market share in each of its three business segments, Moody's said, and the high margins and low capital intensity of its hotel franchise and vacation exchange and rental segments.

The agency said it expects the operating outlook for Wyndham's business to improve modestly from recessionary levels in 2009.

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