Stonegate - comment

Moody’s downgrade to Caa1 is deserved, even if the company has already hired Alix Partners and is trimming its management layers. These actions are at best reasons for keeping a stable outlook. Thus far, we struggle to see a return of the bar and late night venue business and interest coverage is so tight that the bonds are merely a very leveraged bet on Gen-Z’s return to socialising on location. That’s not a credit story.