Marriott suffered from downgrading of its debt ratings by S&P in 2009. The downgrade to BBB- was a result of the overall effect felt on the travel and hospitality industry from the economic decline which resulted in corporate executives making fewer business trips and opting for meetings through electronic media and reductions in family travel.
This downgrade in debt rating increases the overall cost of capital and makes it more difficult and expensive for Marriott to access credit. Fortunately, on October 1, 2010 as the economy has begun to rebound slightly and travel has since increased, S&P has increased Marriott's overall debt rating to BBB and Marriott's reducing the cost of capital and increasing Marriott's access to lower interest rate credit.
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