Moody's confirms Enterprise Inns

Moody's Investors Service said it confirmed Enterprise Inns plc's corporate family rating at B1, probability-of-default rating at B2 and £275 million senior secured floating-rate notes due 2031 at Ba2.

This concludes the review for possible downgrade begun on Feb. 16, and the outlook is negative.

The confirmation follows the conclusion of Enterprise Inns' refinancing of its £1 billion bank facility that was due to mature in May 2011.

The ratings are supported by Enterprise Inns' active management of a predominantly good-quality portfolio of freehold public houses, Moody's said.

Nevertheless, due to a challenging operating environment that is marked by weak consumer spending, the company's beer sales and net rental income remain under pressure, the agency added.

The outlook is negative because Moody's expects Enterprise Inns' EBITDA to remain depressed with limited visibility in terms of pace or duration, putting pressure on financial covenants that already have limited headroom.

© 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.