S&P affirms Cinemark

Standard & Poor's said it affirmed its B corporate credit rating on Cinemark Holdings Inc. and subsidiary Cinemark Inc., which it analyzes on a consolidated basis.

At the same time, S&P said it removed the ratings from CreditWatch with positive implications, where they were placed on May 17.

The outlook is positive.

"The resolution of the CreditWatch reflects uncertainty regarding the pace of leverage reduction," explained S&P credit analyst Tulip Lim.

S&P noted that it also affirmed the B rating on the company's senior secured bank loan while it revised the recovery rating to 3 from 2.

According to the agency, the ratings on Cinemark reflect the company's high lease-adjusted leverage and financial risk, the mature and highly competitive nature of the U.S. motion picture exhibition industry, exposure to the fluctuating popularity of Hollywood films, shortening windows between theatrical and DVD/video-on-demand release and competition from other exhibitors and alternative entertainment sources.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.