Moody's affirms IMAX

Moody's Investors Service said it affirmed IMAX Corp.'s corporate family and probability-of-default ratings at Caa1, speculative-grade liquidity rating at SGL-3 and senior unsecured bonds at Caa2 (LGD4) and changed the loss-given-default rate on the bonds to 62% from 60%.

The outlook is positive.

The affirmation follows the company's recently executed equity issuance and the repurchase of approximately $44 million of its 9 5/8% senior notes due December 2010. The agency said the transactions improve projected credit metrics and liquidity, and IMAX continues to demonstrate positive business momentum, which over time should yield further improvement in credit metrics.

However, Moody's said refinancing risk remains notwithstanding the debt reduction. Both IMAX's revolver and the bonds mature in late 2010.

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