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S&P upgrades Host Hotels & Resorts issuer credit rating

S&P Global Ratings upgraded its issuer credit rating on Host Hotels & Resorts Inc. to BBB- from BB+ and affirmed its issue-level rating on the lodging real estate investment trust's senior unsecured debt at BBB-, with a stable outlook.

The rating agency noted that over the past few years, the REIT has meaningfully lowered its lease-adjusted debt to EBITDA to about 2x, and that it reported funds from operations to debt of about 45% as of June.

Ratings also noted Host Hotels' prudent investment decisions over multiple cycles, its high-quality and geographically diversified portfolio of U.S. hotels, and its strong relationships with successful hotel brands.

The stable outlook factors in the significant cushion in the rating agency's base-case leverage forecast through 2020. It expects that the REIT will make prudent investment decisions on hotel acquisitions and sales to keep leverage within thresholds amid volatility over the lodging cycle.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.