S&P rates AMC loan B+, notes CCC+

Standard & Poor's said it assigned B+ and CCC+ ratings to AMC Entertainment Inc.'s senior secured credit facilities and the senior subordinated notes, respectively.

The agency said the notes will be issued upon closing of AMC's merger with Loews Cineplex Entertainment Corp.

The senior secured credit facilities have a recovery rating of 1, the agency said.

At the same time, S&P stated it expects to affirm all its existing ratings on AMC and Marquee, including the B corporate credit ratings on the post-merger company and Marquee Holdings Inc. upon review of the final credit agreement and the outlook is expected to be negative after the closing of the transaction.

S&P added the rating reflects the company's high leverage, weak profit margins relative to peers, participation in a highly competitive industry and reliance on the popularity of Hollywood films, noting these risks are partially offset by the company's modern theater circuit relative to other major theater chains, its large and geographically diverse U.S. operations and some international diversity.

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