Summary: Choice Hotels International Inc. Feb 10
- ID: 2184281
- February 2010
- Region: Global
- Standard & Poors
The rating on Silver Spring, Md.-headquartered Choice Hotels International Inc. reflects a large and diverse base of franchised hotels that operate under several different brands; a franchise business model, which is not capital intensive and offers relatively stable operating cash flows; and an intermediate financial profile. The company's relatively small asset and cash flow base, and the cyclical nature of the lodging industry temper these factors. In addition, management's stated financial policy that adjusted leverage of around 3x is optimal currently constrains the rating. While it would require a significant increase in investment spending and share repurchases in 2010 to increase leverage that much this year, Standard & Poor's Ratings Services believes longer term that Choice is signaling to investors...
Companies mentioned in this report are: Choice Hotels International Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >