S&P; Cuts Ratings on Hilton to ‘Junk’ Status

Standard & Poor’s cut its ratings on Hilton Hotels Corp. to “junk” status, citing substantially higher debt levels after its acquisition of the lodging assets of Britain’s Hilton Group.

Although Beverly Hills-based Hilton has a good track record of repaying debt after acquisitions, it probably will take at least three years before credit measures improve to levels that support a higher rating, S&P; said.