Moody's Eyes Winston Hotels Rating

The B2 preferred stock rating of Winston Hotels Inc. has been placed on review for downgrade by Moody's Investors Service in the wake of a recent announcement that 100% of Winston's common stock shares would be purchased by Wilbur Acquisition Holding Company LLC.Wilbur, which is held by affiliates of Och-Ziff Real Estate and Norge Churchill Inc., plans to leave the preferred stock outstanding as shares of the surviving entity, Moody's reported. The rating agency said the action "takes into consideration the potential for additional leverage and portfolio sales that may occur when Winston becomes a private company." During its review, Moody's said it will focus on the pro forma capital structure, strategic profile, and management structure of Winston, a real estate investment trust based in Raleigh, N.C. Moody's can be found online at http://www.moodys.com.