Jan 3 - Standard & Poor's Ratings Services today revised its recovery rating
on FelCor Lodging L.P.'s 10% senior notes due 2014 to '1', indicating our
expectation of 90% to 100% recovery for noteholders in the event of a payment
default from '3' (50% to 70% recovery expectation). This resulted in our raising
our issue-level rating on the notes to 'B+' from 'B-', in accordance with our
notching criteria for a '1' recovery rating. The issue-level rating was removed
from CreditWatch, where it was placed with positive implications on Dec. 12,
2012. FelCor Lodging L.P. is a subsidiary of FelCor Lodging Trust Inc.
The rating action reflects the closing of the company's $525 million 5.625%
senior secured notes due 2023 and the use of proceeds to repay $258 million of
the 10% senior secured notes due 2014 ($492 million in notes were outstanding
at Sept. 30, 2012). (See Standard & Poor's research report on FelCor dated
Dec. 12, 2012.) The repayment of a portion of the company's 10% senior secured
notes resulted in a lower level of secured debt outstanding under our
simulated default scenario compared with our previous analysis. This increases
recovery prospects for the 10% senior secured notes enough to warrant the
upward revision to our recovery and issue-level ratings on the notes.
-- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
-- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008
FelCor Lodging Trust Inc.
Corporate Credit Rating B-/Stable/--
FelCor Lodging L.P.
10% sr nts due 2014 B+ B-/Watch Pos
Recovery Rating 1 3
Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left