Standard & Poor’s Drops Downtown Phoenix Hotel Corp Bond Rating and Outlook

[Source: Alacra Store abstract]

On March 24, 2011, Standard & Poor’s Ratings Services lowered its rating on the Downtown Phoenix Hotel Corp.’s hotel net revenue bonds series 2005 A to ‘BB+’ from ‘BBB-‘ and revised the outlook to stable from negative. The project used the debt to build a 1,000-room convention center headquarters hotel in downtown Phoenix.

The hotel opened in late September 2008 and is operating under a Sheraton Corp. flag. The project completed construction on time and within budget and closed out the construction contracts in 2010. The rating action reflects a slower-than-expected ramp-up over the past two years caused by the recession’s impact on downtown Phoenix’s hospitality sector.

Also see: Moody’s slashes bond rating for Downtown Phoenix Hotel Corp. (December 23, 2010)

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