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S&P cuts Enterprise Inns view to negative
Standard & Poor's said it revised the outlook on Enterprise Inns plc to negative from stable and affirmed its long-term corporate credit rating of BB- and senior secured debt ratings on its five public bond issues at BB+ with a recovery rating of 1, reflecting an expectation of 90% to 100% recovery in a default.
The outlook revision reflects Enterprise Inns' higher consolidated adjusted leverage, additional debt amortizations arising from the company's forward-start bank refinancing and the weaker credit metrics that could persist for some time despite ongoing debt repayments, S&P said.
The outlook revision further reflects the risk of potential shortfalls to disposal proceeds, unique dividend lock-up risks, tightening covenants and new debt amortizations, rising lease liabilities and financial policy-related risks, the agency said.
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