S&P rates AMC notes B-

Standard & Poor's said it affirmed its B corporate credit rating on AMC Entertainment Holdings Inc.

The outlook is stable.

At the same time, the agency assigned AMC Entertainment Inc.'s proposed senior subordinated notes due 2022 a B- issue-level rating, with a recovery rating of 5, indicating an expectation for modest (10% to 30%) recovery for noteholders under simulated default scenario.

In addition, the agency revised the recovery rating on AMC Entertainment's existing senior subordinated notes to 5 (10% to 30% recovery expectation) from 6 (0% to 10% recovery expectation), and subsequently raised the issue-level rating to B- from CCC+.

S&P expects that recovery prospects will improve for senior subordinated noteholders because the proposed transaction results in less higher-priority debt in the capital structure.

The agency also expects credit metrics to improve as a result of the transaction, although pro forma leverage will remain high in the low-5x area.

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