Moody's ups Regal Entertainment's view to stable

Moody's Investors Service said it revised the outlook on Regal Entertainment Group to stable from negative.

The ratings actions include Regal Entertainment Group's corporate family rating affirmed at Ba3, outlook revised to stable from negative, $240 million of 3¾% senior unsecured convertible notes due 2008 affirmed at B3, Regal Cinemas Corp.'s $100 million senior secured revolver due 2003 upgraded to Ba2 from Ba3 and $1.65 billion senior secured term loan due 2010 upgraded to Ba2 from Ba3.

The outlook change reflects Moody's view that a downgrade over the next 12 to 18 months is not likely given expectations that dividends will not increase beyond current levels over the intermediate term.

Moody's said it believes that Regal's operating leases, along with the senior unsecured convertible notes, provide a substantial layer of debt capital junior to the bank debt, thus warranting the Ba2 rating on the senior secured debt, one notch higher than the Ba3 corporate family rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.