Moody's affirmed its ratings on lodging real estate investment trust Host Hotels & Resorts Inc.'s operating partnership with a stable outlook.
Specifically, the rating agency affirmed Host Hotels & Resorts LP's senior unsecured debt and senior unsecured shelf ratings at Baa2 and (P)Baa2, respectively.
Moody's said the REIT's senior unsecured debt rating takes into account its dominant size and scale in the lodging sector, low leverage and an approximately 100% unencumbered asset pool.
Operator concentration and the cyclicality inherent in the lodging sector offset the credit positives, according to the rating agency.
The stable outlook factors in the rating agency's expectation that the REIT will maintain its conservative capital structure with low leverage and high fixed-charge coverage.