S&P rates Regal notes B-

Standard & Poor's said it affirmed the B+ corporate credit rating on Regal Entertainment Group, along with all other ratings on the company.

The outlook is stable.

Regal Entertainment and subsidiary Regal Cinemas Corp. are rated on a consolidated basis.

The agency also said it assigned a B- rating to the company's proposed $250 million senior notes due 2023 with a recovery rating of 6, indicating 0 to 10% expected default recovery.

The proceeds will be used for general corporate purposes, acquisitions and debt repayment, S&P said.

The agency also said it revised the recovery rating on the company's senior secured debt to 1, indicating 90% to 100% expected default recovery, from 2, which indicates 70% to 90% expected default recovery.

The revision is based on an expectation for higher enterprise value and higher recovery prospects for senior secured debt holders in the simulated year of default, S&P said.

The agency also said it the rating on this debt to BB from BB-.

The ratings consider the company's aggressive financial risk profile, high leverage amid volatile revenue and discretionary cash flow, S&P said.

The agency said it expects increasing dividends, higher capital spending and volatile box office trends to keep leverage elevated at about 6x over the intermediate term.

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