(The following statement was released by the rating agency)

Dec 07 -

OVERVIEW

-- We have lowered our ratings on all classes of notes in Punch B following our revision of its business risk profile to the 'weak' category.

-- The downgrades additionally account for our growing concerns about the short-term prospects of the securitization, which in our view is accelerating toward a default covenant breach, if the announced restructuring is not accomplished.

-- The outlook is negative.

-- This transaction is a corporate securitization backed by a portfolio of tenanted public houses.

Standard & Poor's Ratings Services today lowered its credit ratings on all Punch Taverns Finance B Ltd.'s (Punch B) notes. The outlook is negative (see list below).

The downgrades follow our revision of the business risk profile of Punch B to 'weak' from the lower end of the 'fair' category. The revision of the business risk profile reflects our expectation of further declines in the EBITDA generated by the securitized estate both in absolute terms, and on a per-pub basis.

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