S&P affirms AMC Entertainment after acquisition

Standard & Poor's said it affirmed AMC Entertainment Holdings Inc.'s B corporate credit rating and removed the ratings from CreditWatch, where they were placed with developing implications in May 2012.

The outlook is stable.

The affirmations reflect the completed review of AMC's acquisition by Dalian Wanda, S&P said.

The corporate credit rating reflects an expectation that AMC will continue to have a high tolerance for financial risk, leverage will remain high and the company's unadjusted EBITDA margin will remain lower than peers, the agency said.

S&P said it did not expressly attribute any credit support from parent company Dalian Wanda, nor did it assume any future dividend payout to Wanda.

The company's aggressive financial policy and high debt-to-EBITDA ratio underpin AMC's financial profile as highly leveraged, the agency said.

The company's business profile is weak, given the mature and volatile nature of the movie exhibition industry, the company's dependence on box office performance and its relatively low unadjusted EBITDA margin, S&P said.

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