S&P cuts Hospitality Properties rating outlook

Credit-ratings agency Standard & Poor's Rating Services on Wednesday lowered its rating outlook for Hospitality Properties Trust to "Negative" from "Stable" due to concern over deferred rent from the trust's largest tenant, TravelCenters of America.

S&P affirmed its BBB corporate credit rating, which is a lower medium-grade rating two notches above "junk" status.

Analyst Emile Courtney said in a statement from S&P the revision reflects "uncertainties regarding prospects and timing" for the trust to receive repayment of deferred rent. Courtney also cited an expectation for "weakening credit metrics" at the trust during the rent deferral period.

Hospitality Properties said Tuesday it agreed to give TravelCenters an option to defer rent under leases with the trust until the end of 2010.

Hospitality Properties Trust is a Newton, Mass.-based hotel real estate investment trust. Its shares rose 12 cents to $21.88 in afternoon trading.