Wednesday, September 30, 2009

Falling earnings could force more landlords to close pubs

"Moody's is concerned over the medium-term cash-flow generation ability of the two biggest pubcos, Enterprise Inns and Punch Taverns, relative to their outstanding debt levels in light of the challenging trading environment," the agency said. The companies' credit positions are also likely to worsen because it will be difficult to pay back debt at the same pace that earnings are falling, Moody's said.

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