Moody’s Investors Service downgraded Hilton Hotels Corp.’s debt to junk bond status, citing its higher debt loads to pay for the $5.7 billion purchase of Hilton Group’s international hotel operations.

Moody’s cut Hilton’s debt two notches, from the lowest investment grade rating to the second-highest junk rating of “Ba2.” Moody’s cited the “difficulty of predicting the timing” of selling off real estate assets to pay for the acquisition as well as higher leverage as the reason for the downgrade. Roughly $3.7 billion of debt was affected by the rating cut, which makes Hilton’s borrowing costs higher.

Hilton’s purchase is comprised of a $2.75 billion 5-year revolving loan, a $2 billion 5-year term loan and a $750 million 7-year term loan. Moody’s also assigned the same junk rating to the bank loans Hilton obtained to fund the acquisition.