Fitch affirms Regal Entertainment

Fitch Ratings said it affirmed the issuer default ratings on Regal Entertainment Group and Regal Cinemas Corp. at B+.

The outlook is stable.

Ratings reflect the company's size and position as a leading theater exhibitor, solid geographic diversity, sound operating performance and relatively stable free cash flow generation, the agency said.

These strengths are balanced by risks associated with collapsing film distribution windows, increased competition from at-home entertainment media, high operating leverage and a history of aggressive dividend payouts, Fitch said.

For the 12 months ending Sept. 30, the issuer's unadjusted leverage was 3.6 times while adjusted leverage was 5.2 times.

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