Moody's rates AMC loan Ba2, lowers bonds to B2

Moody's Investors Service said it assigned a Ba2 rating to the proposed $300 million senior secured term loan of AMC Entertainment, Inc.

The transaction favorably extends the maturity profile and could result in a modest reduction in interest expense, and Moody's affirmed AMC's B2 corporate family rating and its SGL-1 speculative grade liquidity rating.

Moody's also lowered the rating on AMC's senior unsecured bonds to B2 from B1.

The transaction will increase secured debt that ranks ahead of the bondholders by approximately $160 million and reduce the junior capital (subordinated bonds) beneath the bondholders by about $160 million, Moody's said.

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