Fitch rates AMC notes B

Fitch Ratings said it assigned a B/RR4 rating to AMC Entertainment, Inc.'s senior unsecured note offering due 2019. The issuer default rating is B.

The outlook is stable.

Proceeds are expected to be used to fund the company's tender offer of its $250 million 8 5/8% senior unsecured notes due 2012 and for general corporate purposes, which may include retirement of other debt.

As of April, unadjusted leverage through AMC's secured debt was 3x.

Ratings reflect AMC's significant debt load and significant operating lease commitments related to its theatre circuit, the agency said.

Ratings also reflect the current and prospective challenges facing the movie exhibitor industry, the agency noted.

Ratings are supported by AMC's competitive positioning as the second largest domestic movie exhibitor with a major presence in urban markets and a leading market share in many of the largest designated market areas, Fitch said.

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