Fitch Ratings upgraded Host Hotels & Resorts Inc.'s long-term issuerdefault rating to BBB from BBB-.
The outlook is stable.
Fitch credited the upgrade to its view that Host Hotels willsustain leverage within the more conservative public financial policy targetrange of 2.5x to 3.0x that the company implemented after the last downturn. Thecompany's sizable and liquid pool of unencumbered assets, as well as itshigh-quality and geographically diverse upper-tier hotels, also supported theratings, Fitch said.
The stable outlook, meanwhile, reflects Fitch's expectationsthat Host Hotels will maintain a credit profile that is appropriate for the BBBrating through economic cycles and that the company's portfolio quality andunencumbered asset coverage should offer bondholders "good downsideprotection."
Fitch also upgraded its ratings on Host Hotels & ResortsLP, the company's operating partnership, including its long-term issuerdefault, senior unsecured credit facility and senior unsecured note ratings, toBBB from BBB-.