Moody's: AMC view to negative

Moody's Investors Service changed the outlook of AMC Entertainment, Inc. to negative from stable.

Anemic movie theater-attendance trends are pressuring the already weak credit profile with no clear trajectory for meaningful improvement, Moody's said.

AMC Entertainment's B2 corporate family and probability of default ratings were affirmed, along with its SGL-1 speculative-grade liquidity rating and the Ba2 rating on its senior secured bank credit facility rating with its LGD lowered to LGD 2, 10 % from LGD 1, 9%.

The agency also affirmed its 8¾% senior unsecured notes due June 2019 at B1 with its LGD lowered to LGD 3, 41% from LGD 3 , 36%, along with the rating on its 9¾% senior subordinated notes due December 2020 at Caa1 with its LGD adjusted to LGD 5, 78%. Moody's also affirmed its 8% senior subordinated notes due March 2014 at Caa1 with its LGD adjusted to LGD 5, 78%.

AMC Entertainment Holdings Inc.'s payment-in-kind term loan due June 2012 was affirmed at Caa1 (LGD 6, 95%).

Moody's said it expects AMC's credit metrics to deteriorate modestly based on the reported weak box office trends of the December 2011 quarter. These results also will likely damage its initial public offering prospects, at least in the near term, the agency said.

But very good liquidity continues to support the rating and Moody's said it believes the company can address upcoming maturities, including the June 2012 maturity of a $215 million term loan at AMC Holdings, with internal sources.

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