S&P affirms AMC

Standard & Poor's said it affirmed the B- rating on AMC Entertainment Inc.'s proposed senior unsecured notes due 2019, following the company's upsizing of the issue to $600 million, from $300 million. The recovery rating is 5. The corporate credit rating is B.

The outlook is stable.

The B rating reflects the company's high financial risk tolerance, high leverage and lower EBITDA margins relative to peers, the agency said.

The rating also considers the company's participation in the mature and highly competitive U.S. movie exhibition industry, exposure to the fluctuating popularity of Hollywood films, risk of increased competition from the proliferation of entertainment alternatives and pressure from shortening movie release windows, S&P noted.

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