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S&P affirms Ryman Hospitality; Fitch assigns 1st-time ratings

S&P Global Ratings affirmed its ratings on Ryman Hospitality Properties Inc., while Fitch Ratings assigned its first-time ratings to the company.

Ratings affirmed its B+ issuer credit rating and all existing issue-level ratings on the hotel real estate investment trust's debt, with a negative outlook. It assigned a BB- issue-level rating and 2 recovery rating to the $500 million senior unsecured notes being issued by the REIT's units RHP Finance Corp. and RHP Hotel Properties LP.

The rating agency said it affirmed Ryman's issuer credit rating despite weak leverage through 2020, as well as slowing, low-single-digit growth in U.S. lodging market revenue through 2020.

Ratings expects that the REIT's net rooms nights booked over the next two years will drive total RevPAR performance that will potentially outpace the sector and allow the company to lift EBITDA and cut leverage under the rating agency's 5x downgrade threshold over the next two years.

Fitch assigned a BB- long-term issuer default rating to the REIT and its operating partnership, among other ratings, with a stable outlook.

The rating agency noted that the REIT owns a high-quality, concentrated portfolio of five specialized hotels and its capital access is sufficient for the rating.

Ryman's entertainment segment offers some additional cash flow diversification and stability, according to Fitch.