Oct 2 - Standard & Poor's Ratings Services said today that it assigned Parsippany, N.J.-based timeshare and lodging company Wyndham Worldwide Corp.'s
proposed maximum $500 million 4(a)(2) commercial paper program its 'A-3' short-term rating. Wyndham intends to use the proceeds for general corporate purposes. All other ratings on Wyndham, including the 'BBB-' corporate credit rating, remain unchanged. The long-term rating outlook is stable.
Wyndham's $1 billion revolving credit facility due July 2016 backs up the company's proposed commercial paper program. The terms of the credit facility are aligned with our criteria and include the ability to make same-day drawings and diverse bank group participation.
The long-term 'BBB-' corporate credit rating reflects on Wyndham reflects our assessment of the company's business risk profile as "satisfactory" and our assessment of the company's financial risk profile as "intermediate," according to our criteria. Our business risk profile assessment is based on the company's significant and, in some cases, leading market positions in each of its business units, a good level of business diversity, and our positive view of management as a prudent business operator. Our view of the company's financial risk reflects our expectation that Wyndham will maintain captive finance adjusted total debt to EBITDA below 3.5x and captive finance adjusted funds from operations to total debt in the low-20% area or higher over the economic cycle.
(For the latest complete corporate credit rating rationale, see Standard & Poor's research report on Wyndham published Aug. 16, 2012.)
RELATED CRITERIA AND RESEARCH
-- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
-- Short-Term/Long-Term Ratings Linkage Criteria For Corporate And Sovereign Issuers, May 15, 2012
-- 2008 Corporate Criteria: Commercial Paper, April 15, 2008
RATINGS LIST Wyndham Worldwide Corp. Corporate Credit Rating BBB+/Stable/A-3 New Rating Wyndham Worldwide Corp.
Max $500M (4)(2) comm paper prog A-3
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at
. All ratings affected by this rating action can be found on Standard & Poor's public Web site at . Use the Ratings search box located in the left column. (New York Ratings Team)