S&P puts AMC Entertainment on watch

Standard & Poor's said it placed its ratings on AMC Entertainment Inc., including the B corporate credit rating, on CreditWatch with negative implications, based on the company's high leverage and our expectations that it will be difficult to bring leverage down consistent with the timeline that the rating had originally anticipated.

The agency said that several factors lead it to believe that the company will likely be unable to improve its credit profile very meaningfully over the next year, and will make its prospects for a reversal of negative discretionary cash flow challenging.

According to S&P, box office performance for the fiscal year ended March 30 was weak, causing AMC's EBITDA per screen, pro forma for the merger with Loews Cineplex Entertainment Corp., to fall since the fiscal year ended Dec. 29.

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