...The affirmation of Mitchells & Butlers Finance Plc's (M&B) Class A notes and interest-rate and cross-currency swaps, Class AB, Class B, Class C and Class D notes at `A+', `A-', `BB+', `BB' and `B+', respectively, reflects Fitch Ratings' expectation of continued performance stabilisation and M&B's high-quality estate. The managed business model helps the group adapt to the dynamic and competitive eating-and-drinking out market in the UK. Apart from the rise of National Living Wage and National Insurance contributions, the pub sector's cost challenges are easing. The ratings of the Class A notes and the swaps reflect strong free cash flow (FCF) debt service coverage ratio (DSCR) metrics with sufficient rating headroom to absorb material EBITDA deterioration in a downturn. The ratings are constrained at `A+' by our overall `Midrange' industry profile assessment for the pub sector. The Stable Outlooks reflect the reducing cost pressure and our expectations of EBITDA returning to pre-pandemic...
