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.

© 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.