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Fitch Rates Host Hotels & Resorts, L.P. $425MM Private Placement Senior Notes 'BB'; Outlook Stable

^{Published on 2011-05-06 17:40:55 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has assigned a 'BB' rating to the $425 million 5.875% private placement senior notes due 2029 issued by Host Hotels & Resorts, L.P., the sole general partner of Host Hotels & Resorts, Inc. (NYSE: HST). Fitch currently rates the company as follows:

Host Hotels & Resorts, Inc.
--Issuer Default Rating (IDR) 'BB'.

Host Hotels & Resorts, L.P.
--IDR 'BB';
--Bank credit facility 'BB';
--Senior notes 'BB';
--Exchangeable senior debentures 'BB'.

The Rating Outlook is Stable.

The net proceeds of the offering of approximately $415 million will be used to redeem the company's entire $250 million aggregate principal amount of outstanding 7.125% Series K senior notes due November 2013, to repay $50 million in borrowings under the company's bank credit facility, and for general corporate purposes. The offering is expected to close May 11, 2011, subject to the satisfaction or waiver of customary closing conditions.

For additional information, please refer to Fitch's full rating report on Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. dated April 13, 2011 and available at [ www.fitchratings.com ].

Headquartered in Bethesda, MD, Host Hotels & Resorts, Inc. is a lodging real estate investment trust focused on luxury and upper-upscale hotels. Host currently owns 123 properties totaling approximately 65,700 rooms, and also holds a non-controlling interest in a joint venture in Europe that owns 11 hotels with approximately 3,500 rooms. As of March 31, 2011, Host had $12.5 billion in total assets and shareholders' equity of $6.4 billion.

Additional information is available at [ www.fitchratings.com ].
Applicable Criteria and Related Research:
--'Criteria for Rating U.S. Equity REITs and REOCs' (March 15, 2011);
--'Corporate Rating Methodology' (Aug. 16, 2010);
--'Equity Credit for Hybrids & Other Capital Securities - Amended' (Dec. 29, 2009);
--'Rating Hybrid Securities' (Dec. 29, 2009);
--'Recovery Rating and Notching Criteria for REITs' (Dec. 23, 2009).

Applicable Criteria and Related Research:
Criteria for Rating U.S. Equity REITs and REOCs
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=610687 ]
Corporate Rating Methodology
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646 ]
Equity Credit for Hybrids & Other Capital Securities - Amended
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493112 ]
Rating Hybrid Securities
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086 ]
Recovery Rating and Notching Criteria for REITs
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=492828 ]

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