Moody's: Wyndham notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Wyndham Worldwide Corp.'s proposed $600 million five- and 10-year senior unsecured notes that could be upsized.

Wyndham's existing Baa3 senior unsecured ratings were affirmed.

The outlook is stable.

Moody's said the Baa3 ratings consider that despite a $150 million increase in total debt, the proposed transaction will extend debt maturities and lower the company's overall interest costs.

Additionally, Moody's said it expects rising earnings will absorb the increase in total debt resulting from transaction over the next year, and as a result, retained cash flow to net debt will remain at about 24%.

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