Fitch rates Greene King notes BBB+

Fitch Ratings said it assigned an expected BBB+ rating Greene King Finance plc's upcoming tap issuance of up to £250 million class A7 secured fixed-rate notes due 2035.

The outlook is stable.

The ratings reflect the good quality estate with strong long-term historical financial performance and Greene King's ability to address industry challenges in a difficult trading environment, Fitch said.

The debt structure is robust and benefits from all the standard whole business securitization, the agency said.

The pub sector in the United Kingdom has a long history, but trading performance for some assets has shown significant weakness in the past, Fitch said.

The sector is exposed to discretionary spending, strong competition, minimum wage, taxes and utility costs, the agency said.

The U.K.'s decision to leave the European Union adds uncertainty, Fitch said.

Patronage of pubs also could decline as a result of falling consumer confidence and a weaker pound, the agency said.

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