Moody’s lowers Wyndham Destinations

Moody’s Investors Service said it downgraded the ratings of Wyndham Destinations, including its corporate family rating to Ba3 from Ba2, its probability of default rating to Ba3-PD from Ba2-PD and senior secured bank facility and note ratings to Ba3 from Ba2.

At the same time, Moody’s downgraded the company’s speculative grade liquidity rating to SGL-2 from SGL-1 and revised the outlook to negative from stable.

“The downgrade reflects Moody’s expectation that Wyndham Destinations’ earnings will be pressured in 2020 and 2021 due to travel restrictions and macroeconomic weakness related to the spread of the coronavirus (Covid-19) which will lead to debt/EBITDA remaining above the downgrade indicator of 5x for the next two years,” stated Pete Trombetta, a Moody’s lodging and cruise analyst, in a press release.

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