S&P rates Wyndham notes BBB-

Standard & Poor's said it assigned a BBB- rating to Wyndham Worldwide Corp.'s proposed $250 million of senior notes due 2021.

The outlook is stable.

Wyndham plans to use the proceeds from the proposed notes offering to fund the company's tender for remaining outstanding convertible notes due 2012 and to repay borrowings under the revolving credit facility.

S&P affirmed the company's BBB- corporate credit and senior debt ratings.

The ratings reflect Wyndham's significant and, in some cases, leading market positions in each of its business units, as well as the relatively stable revenue and cash flow characteristics over the cycle across the lodging, timeshare exchange and vacation rentals businesses, the agency said.

The ratings also consider a significant level of revenue volatility and high historical levels of capital intensity in the timeshare development industry, the cyclical nature of the lodging and timeshare businesses, and the company's participation in highly competitive markets, the agency added.

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