Moody's revises Service Properties view to negative

Moody's Investors Service said it revised the outlook of Service Properties Trust to negative from stable. At the same time, Moody's affirmed all of the REIT's ratings, including its Baa3 senior unsecured rating.

The negative outlook reflects Moody's expectations that travel restrictions being put in place across the United States related to the coronavirus will put significant pressure on Service Properties' earnings in 2020, the agency said.

“Additional travel restrictions likely to be put in place over the coming weeks will put further pressure on the REIT's earnings, however its strong lease and management agreements that include cash security deposits should provide valuable protection during this period of unprecedented decline in occupancy and deterioration in operator health,” Moody’s said in a press release.

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