S&P: Regal Entertainment view stable

Standard & Poor's said it affirmed Regal Entertainment Group's BB- corporate credit rating and revised the outlook to stable from negative.

The outlook revision is based on financial policy trends that help alleviate concerns about debt-financed shareholder-friendly actions, according to the agency.

Regal plans to offer $190 million to $210 million of convertible senior notes. Proceeds likely will be used to purchase existing convertible notes or repay them at maturity, and could be used to settle any conversion of the notes.

S&P said the rating reflects the mature U.S. movie industry amid expanding entertainment choices, fluctuating popularity of Hollywood films, relatively high leverage and somewhat aggressive financial policies.

The company's diverse and high-quality U.S. theater circuit, profit margins and discretionary cash flow partially mitigate these concerns, the agency said.

The company has a lease-adjusted debt-to-EBITDA ratio at 5.5 times.

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