Moody's: AMC acquisition is positive

Moody's Investors Service said that Dalian Wanda Group Co., Ltd.'s plan to acquire AMC Entertainment Inc. does not affect AMC's B2 corporate family rating, negative outlook or instrument ratings.

However, Moody's said it expects the transaction to be credit positive because it provides an exit for AMC's current owners, private equity firms Apollo Management, Bain Capital, The Carlyle Group, CCMP Capital Advisors and Spectrum Equity Investors.

The sponsor ownership currently weighs negatively on the rating. Furthermore, Wanda has committed to investing in AMC, and Moody's said it believes ownership by a strategic company, rather than financial sponsors, could improve operations over time.

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