New York, November 16, 2015 -- Moody's Investors Service today affirmed Marriott International, Inc.'s Baa2 senior unsecured rating following its announcement that it will acquire Starwood Hotels & Resorts Worldwide Inc. (after the spin-off of the timeshare business) in a transaction valued at approximately $13.4 billion. Moody's estimates this represents about a 12.2 times EBITDA multiple. Starwood shareholders will receive .92 shares of Marriott stock in exchange for each Starwood share and $2 per share in cash. The transaction value includes Marriott's assumption of $2.2 billion of Starwood recourse debt at September 30, 2015. Moody's expects Marriott to take steps to ensure that the existing Starwood debt will rank pari passu with the Marriott debt in the capital structure. The rating outlook remains stable.
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