S&P: Cinemark on positive watch

Standard & Poor's said it placed its issue ratings on Cinemark Inc. and subsidiary Cinemark USA Inc. on CreditWatch with positive implications.

The rating action is based on the plans of parent company Cinemark Holdings Inc. to reduce debt from a portion of the proceeds from its IPO, the agency said.

At the same time, S&P said it assigned a B corporate credit rating to Cinemark Holdings Inc. and placed it on CreditWatch with positive implications too.

If the company significantly reduces leverage with the proceeds from the transaction while maintaining good discretionary cash flow, S&P added that it may raise the rating.

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