Fitch rates AMC loans BB, notes CCC+

Fitch Ratings said it assigned initial ratings for AMC Entertainment Inc. and its parent, Marquee Holdings Inc.

Assigned ratings for AMC include the issuer default rating at B; $850 million of proposed new guaranteed senior secured credit facilities at BB/RR1, consisting of $200 million revolving credit facility due January 2012, $650 million term loan B facility due January 2013; $455 million of existing guaranteed senior unsecured notes at B/RR4, consisting of $250 million 8 5/8% senior unsecured notes due August 2012 and $205 million Libor plus 425 bps floating-rate senior unsecured notes due August 2010; and $1.013 billion of guaranteed senior subordinated notes at CCC+/RR6, consisting of $325 million of proposed new senior subordinated notes due 2016, $213 million remaining 9.5% existing senior subordinated notes due February 2011, $175 million 9.875% existing senior subordinated notes due February 2012 and $300 million 8% existing senior subordinated notes due March 2014.

Marquee's assigned ratings include the issuer default rating at B and $304 million of existing unguaranteed 12% senior discount notes due August 2014 at CCC/RR6, the agency said.

Fitch added the ratings reflect the capital structure and operations of AMC, pro forma for the company's pending merger with Loews Cineplex Entertainment Corp.

The outlook is stable.

The issuer default rating reflects that AMC remains a highly leveraged company within the very competitive and rapidly consolidating theatrical exhibition industry, Fitch said.

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