S&P affirms Hollywood Theaters

Standard & Poor's said it affirmed its B corporate credit rating to Hollywood Theaters Inc., which is analyzed on a consolidated basis with its parent company, Hollywood Theaters Holdings Inc. and removed the ratings from CreditWatch with negative implications, where they had been placed on Sept. 2, 2005.

The agency said that the company recently amended its credit facility, which will widen its cushion of compliance with financial covenants.

The outlook is negative.

S&P noted that the rating reflects Hollywood Theaters' high leverage, cash flow concentration risks, the mature and highly competitive nature of the industry, the company's exposure to the fluctuating popularity of Hollywood films and its negative discretionary cash flow.

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