Moody's cuts Enterprise Inns

Moody's Investors Service said it downgraded Enterprise Inns plc's corporate family rating to B3 from B2, the probability of default rating to Caa1 from B3 and the instrument rating of its £275 million senior secured fixed-rate notes due 2031 to B2 from Ba3.

The corporate family rating is assigned to the unconsolidated parent company.

The outlook remains negative.

Moody's said the downgrade of Enterprise Inns' corporate family rating reflects its concerns on the deteriorating operating conditions in the pub industry and that the company's financial strength metrics, notably adjusted leverage and fixed charge coverage, are unlikely to improve sufficiently over the medium term while the financial flexibility of the company is increasingly restricted.

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