What's in a rating?

News that Moody's, the US credit ratings agency, had downgraded Enterprise Inns' 'corporate family rating' didn't exactly faze investors in the group last week.

Instead of sliding the pubco's shares rose, along with a number of its peers, as the market digested a variety of economic indicators, some positive, some not so.

When I asked one analyst about Moody's take on Enterprise he was nonplussed. While sympathising with some of its concerns about the pubco's beer sales and rental income profile he noted that ratings agencies - august though they are - were often "behind the curve". They tended to focus as much on past performance as trading patterns going forward, he argued.

Another observer suggested that while Moody's was entitled to review its stance on pubcos, as it did the utilities sector, the credit rating agency community had not exactly covered itself in glory in the last 18 months.

It is possible that as a consequence ratings types are now overly cautious in their assessment of the debt - and repayment profile - of companies as highly leveraged as Enterprise.

The pubco, along with its similarly indebted peers, has often argued that the most important thing remains its ability to service its debt, which it says has been satisfactory and thus it will remain.

Critics might have a different take on this last point, but Enterprise's sale and leaseback strategy continues apace and with apparent success, despite the initial misgivings of some.

Aside from trading its pubs through what remains of the recession Enterprise's priority will be getting down debt in time for the refinancing of its £1bn bank facility due in May next year.

It believes it is chipping away at it by raising cash through sale and leasebacks and other disposals. The question in many people's minds is, will it be enough?