Moody’s applies Ba3 to Hilton notes

Moody's Investors Service said it assigned a Ba3 rating to Hilton Worldwide Finance, LLC's proposed $1.5 billion senior unsecured notes offering.

Hilton's Ba2 corporate family rating, Ba2-PD probability of default rating, Ba1 bank credit facilities and Ba3 senior unsecured note ratings are unchanged.

The outlook remains stable.

Proceeds from the offering will be used to repay existing debt, including Hilton's 5 5/8% senior notes due 2021 or its existing term loan B-1 tranche.

Moody's said it views the transaction as a credit positive as it will push out the maturity of a portion of its existing debt. The redemption will also reduce Hilton's interest expense by about $15 million annually.

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