Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers E > Headlines for Enterprise Inns plc > News item |
Moody's cuts Enterprise Inns
Moody's Investors Service said it downgraded the corporate family rating of Enterprise Inns plc to Ba2 from Ba1 and its £275 million senior secured notes due 2031 to Baa3 from Baa2, and assigned a probability-of-default rating of Ba3.
The outlook is negative.
According to Moody's, the downgrade reflects market conditions and underlying industry fundamentals, which augur for worsening performance.
The Ba2 corporate family rating reflects the company's active management of a portfolio of 7,800 freehold public houses, the agency said.
The large pub estate provides diversification and stability to its revenues, underpinned by long-term leases, low operational gearing and beer volumes, which have historically been predictable but in structural decline, the agency noted.
Ratings could be downgraded if the parent company's adjusted ratio of net debt to recurring EBITDA were to rise above 6x or its adjusted ratio of net debt to recurring EBITDA above 7.5x.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.