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Moody’s Cuts Hilton Debt Rating to ‘Junk’

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From Bloomberg News

Hilton Hotels Corp.’s debt ratings were cut to “junk” by Moody’s Investors Service, which cited the company’s proposed $5.71-billion purchase of Britain’s Hilton Group.

Hilton’s senior notes were cut two levels to Ba2 from Baa3. About $3.7 billion of debt is affected by the lower rating, Moody’s said.

The purchase would give Hilton many hotels with leases, Moody’s said. The ratings cut results from uncertainty about when Hilton would sell the leases and concern about the company’s level of debt to earnings.

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