Fitch: Whitbread notes BBB

Fitch Ratings said it assigned a final BBB rating to the £450 million 3 3/8% senior unsecured notes due 2025 issued by Whitbread Group plc, a 100% subsidiary of Whitbread plc.

The action follows a review of the final terms of the bonds, which principally conformed to information already received, Fitch said.

The proceeds will be used for general corporate purposes, including capital expenditure, the agency said.

The notes will rank pari passu with other unsecured obligations, Fitch said.

The equalization of the rating on the notes with Whitbread’s BBB long-term issuer default rating is supported by the absence of material prior ranking debt in the capital structure, the agency said.

The ratings reflect Whitbread’s leading position in the less cyclical budget segment of the U.K. hospitality sector, Fitch said.

The company benefits from well-invested estate and business customers choosing less expensive hotels, the agency said, along with its geographical diversification outside of the United Kingdom.

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