S&P rates AMC loan BB-

Standard & Poor's said it assigned AMC Entertainment Inc.'s proposed $300 million term loan due 2018 its BB- issue-level rating. The agency said it also assigned a recovery rating of 1 to this debt, indicating an expectation of very high recovery for lenders in the event of a payment default.

According to S&P, the company plans to use the proceeds to repay the non-extended senior secured term loan due in 2013 and a portion of the senior subordinated notes due in 2014.

The agency said its corporate credit rating on AMC Entertainment is B and the outlook is stable.

"The corporate credit rating reflects our 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'," said S&P credit analyst Jeannie Shoesmith in a news release.

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