Moody's issued a corporate family rating of Ba2 to Wyndham Destinations Inc., known previously as Wyndham Worldwide Corp., following its recently concluded restructuring with Wyndham Hotels & Resorts.
The rating agency also assigned Wyndham Destinations a Ba2-PD probability of default rating and SGL-1 speculative grade liquidity rating, with a stable outlook. The move brought an end to the review of the company's ratings for downgrade.
Moody's noted Wyndham Destinations' position as the largest vacation ownership company by revenue, which supports its credit profile. The hotelier's cash flow and cash balances also provide it good liquidity, according to the report.
The stable rating outlook reflects Moody's expectation that Wyndham Destinations will keep its leverage in the range of 4.5x to 5.0x.
