S&P lowers Regal

Standard & Poor's said it lowered its corporate credit and issue-level ratings on Regal Entertainment Group. and subsidiary Regal Cinemas Corp. by one notch; the corporate credit rating was lowered to B+ from BB-.

The ratings were removed from CreditWatch, where they were placed with negative implications Nov. 19, and the outlook is stable.

The agency said the rating change is based on its concern that Regal's debt leverage will remain elevated in 2009 and likely in 2010, will rise above S&P's 5.75 times threshold for the company at a BB- rating and cause the company's cushion of compliance with covenants to narrow.

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