S&P lifts AMC view to positive

Standard & Poor's said it revised its outlook on AMC Entertainment Inc. and its parent company, Marquee Holdings Inc., to positive from stable following the announcement of a definitive agreement to merge with Loews Cineplex Entertainment Corp.

At the same time, the agency said it affirmed its ratings on AMC, Marquee and Loews, including the B secured bank loan and corporate credit ratings, on these companies.

The Loews outlook remains positive.

Following the merger, AMC will be the surviving company and will have $2.5 billion in debt and $3 billion in operating lease debt, the agency added, stating that the pending merger should strengthen the already solid competitive profile of the company in large metropolitan U.S. markets, enhance profitability through cost reductions and scale advantages and allow for better coordination of assets and capital spending, S&P noted.

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