Moody's: Regal outlook stable

Moody's Investors Service said it confirmed Regal Entertainment Group’s corporate family rating at B1, probability of default rating at B1-PD and senior notes at B3 (LGD5), affirmed its speculative grade liquidity rating at SGL-1 and confirmed Regal Cinemas Corp.’s backed senior secured credit facilities at Ba1 (LGD2). The outlook is stable.

These actions conclude the review for upgrade that began on June 16 upon the adoption of Moody's updated approach for standard adjustments for operating leases.

The agency said Regal's B1 corporate family rating incorporates the company's liberal use of operating cash flow and the constraints imposed by a mature industry experiencing a secular decline in attendance.

Despite these challenges, the company is the largest operator in the United States and benefits from barriers to entry and good liquidity, Moody’s said.

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