Downgrade for Lloyd Webber

THE poor outlook for West End shows has led to a credit downgrade of Andrew Lloyd Webber's theatre company.

Moody's of the US has cut its ratings on £47m bonds issued by Really Useful Theatres. RUT is a 50/50 joint venture between the composer and life peer's Really Useful Group (RUG) and buyout firm Bridgepoint Capital.

RUT runs 13 theatres, including the Theatre Royal, Drury Lane and the London Palladium.

It bought out rival Stoll Moss in a £150m deal in 2000, before 11 September hit takings. RUT, which had £100m sales last year, is also a top ticketing agency.

Moody's says the 13 theatres have been less full and ticket prices have been lower than it expected.

RUT managing director Andre Patzkinski agrees that it faces a 'nasty blip' next summer. Audiences for shows such as Chitty Chitty Bang Bang could fall off before new blockbusters kick in.

Patzkinski says London theatres had a record 12m visits last year - more than Broadway. He said: 'Musicals are as popular as ever, but theatre is an inevitable pattern of hits and misses.'

Lloyd Webber founded RUG in 1977. His hits include Evita, Cats and Jesus Christ Superstar. >He is working on a new show based on Wilkie Collins' The Woman in White, due to open next year.