Fitch upgrades AMC notes to B-

Fitch Ratings said it affirmed the issuer default rating of AMC Entertainment, Inc. at B and revised the outlook to positive from stable.

Fitch also said it upgraded AMC's senior subordinated notes by one notch to B- with a recovery rating of RR5 from CCC+ with a recovery rating of RR6 on stronger recovery prospects following AMC's tender offer of its senior unsecured notes.

The company's senior secured credit facilities also were affirmed at BB with a recovery rating of RR1 and senior unsecured notes at B with a recovery rating of RR4.

The outlook revision is primarily driven by the company's improved credit metrics, driven by absolute debt reduction, operating improvements and stable outlook on the movie exhibition industry, Fitch said.

Over the next 12 to 24 months, the rating may be upgraded one notch if AMC can demonstrate positive traction with its capital investment plans, via increased revenue per patron and continued growth in EBITDA, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.