BEVERLY HILLS, CA Hilton Hotels Corp., in response to Moodys adding a “negative outlook” to the companys Baa3 rating, issued the following statement from Matthew Hart, evp/CFO.
“We are very surprised and disappointed with the action that Moodys has taken. Advance bookings are solid, room supply growth is diminishing, our franchise business is great, the merger with Promus has been an unqualified success and we expect to generate substantial free cash flow in 2001 and beyond.”
“Our goal for year-end 2000 was a debt to EBITDA ratio of 4.25x. As noted in the Moodys press release, we will end the year at under 4.10x. This improvement has resulted from a combination of lower debt levels and increases in EBITDA. Interest coverage for 2001 should be over 3.75x and our maturities are completely manageable. This action is particularly diappointing given the progress weve made to-date and the prevailing view that the lodging business is in fact quite healthy.” (1/11/01)