Moody’s Revises La Quinta Properties Outlook

NEW YORK— Moodys Investors Service has changed the rating outlook for La Quinta Properties Inc. (senior unsecured at Ba3) to stable, from negative. The rating outlook reportedly reflects the companys progress in deleveraging and improving its credit profile. Moodys has also assigned a first-time (P)B2 rating to La Quinta Properties subordinated debt shelf, and assigned first-time ratings to La Quinta Corp.s universal shelf registration. According to Moodys, the stable outlook reflects successful execution by La Quintas management team of its strategy to sell the companys healthcare portfolio, deleverage, and refocus its business on operating and owning its portfolio of La Quinta limited-service hotel properties, as well as growing the brand through franchising activities. La Quinta recently completed a multi-year $2 billion disposition program of its healthcare assets and the proceeds have been used for debt reduction. La Quinta Properties, a REIT, became a subsidiary company of La Quinta Corp. as a result of a corporate reorganization in January 2002.