S&P keeps Regal on watch

Standard & Poor's said its ratings on Regal Entertainment Group and operating subsidiary Regal Cinemas Corp., including the BB- corporate credit rating, remain on Creditwatch with negative implications, where it initially placed them on Nov. 19.

"The ratings remain on Creditwatch because of its concern regarding the company's higher debt leverage for the BB- corporate credit rating," said S&P credit analyst Jeanne Mathewson.

At Sept. 25, lease-adjusted debt to EBITDA, pro forma for the acquisition of Consolidated Theaters and the NCM Inc. transaction, was high at nearly 6.00x, above its 5.75x threshold for a BB- rating, the agency said.

In resolving the Creditwatch listing, the agency said it will meet with Regal's management team to reassess its business outlook and review its plan for addressing leverage.

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