Stonegate Bonds Plummet as Pub’s Rating Falls Deeper Into Junk

Stonegate’s bonds slid after Moody’s Ratings downgraded the UK pub company one step to Caa1, citing an anticipated weakening in earnings and rising cost pressures.

The move, which took Stonegate’s rating seven rungs below investment-grade, triggered a steep drop in the price of the TDR Capital-owned company’s bonds. Stonegate’s £1.645 billion ($2.2 billion) notes due July 2029 fell almost 3 pence, the largest ever one-day move in the notes, to around 100.8 pence on the pound, according to data compiled by Bloomberg.