Fitch has put Wyndham Worldwide Corp. and its subsidiary Wyndham Global Finance PLC on Rating Watch Negative.
The ratings affected comprise Wyndham Worldwide's long-term issuer default at BBB-, short-term issuer default at F3, senior unsecured credit facilities at BBB-, senior unsecured notes at BBB- and senior unsecured commercial paper at F3; and Wyndham Global's senior unsecured commercial paper at F3.
The rating agency said Wyndham and its subsidiaries face a multi-notch ratings downgrade resulting from the spinoff of the "more stable and less capital intensive" lodging business, which the rating agency views as credit negative.
Fitch believes Wyndham's cash flow will be volatile through the cycle as the company's focus narrows on its timeshare business. Fitch said it needs clarity as to the company's capital structure and strategy post spinoff before it revises Wyndham's ratings.