Moody’s ups Hilton, debt; rates notes Ba2

Moody's Investors Service said it upgraded Hilton Worldwide Finance, LLC’s corporate family rating to Ba1, probability of default rating to Ba1-PD, senior secured rating to Baa3 and unsecured rating to Ba2.

The agency also assigned a Ba2 rating to the company's planned $500 million senior unsecured note issuance and affirmed its speculative grade liquidity rating at SGL-1.

The outlook is stable.

"The upgrade reflects our expectation that Hilton will be able to maintain its Moody's adjusted leverage below 4.5x over the next two years," Moody's lodging analyst Pete Trombetta said in a news release.

"The company will grow earnings through increased fee revenues and net unit growth, with excess cash flow going toward share repurchases and dividends."

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