Fitch views PizzaExpress negatively

Fitch Ratings said it revised the outlook for Wheel Bidco Ltd. (PizzaExpress) to negative from stable and affirmed its issuer default rating at B.

“The outlook change reflects our view of slower-than-expected post-pandemic recovery in an uncertain macroeconomic environment, as consumer spending tightens in an inflationary environment. We expect a temporary increase of leverage over 2022-2023, reaching 7x in 2023, which is not commensurate with the current rating,” Fitch said in a press release.

The agency noted it considers the issuer’s financial flexibility sufficient to endure the slower recovery and increasing inflation before maturities in 2026.

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