Moody's rates Stonegate notes B2

Moody's Investors Service said it affirmed Stonegate Pub Co. Ltd.'s B2 corporate family rating and B2-PD probability of default rating.

Moody's also said it affirmed the existing B2 ratings of the existing senior secured notes of Stonegate Pub Co. Financing plc, and assigned a B2 rating to the new £150 million senior secured notes due 2022.

The outlook is stable.

While Stonegate's leverage remains high, the company has a strong track record of successfully integrating acquisitions, Moody's said.

The agency said it expects this to continue with these latest deals.

The company's clear strategic focus on drinks-led pubs and significant investment capital spending is driving strong like-for-like sales and stable profit margins, Moody's explained.

This is despite the competitive and cost challenges faced by the industry, the agency added.

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