Moody's affirms Regal Cinemas

Moody's Investors Service said it affirmed the Ba2 secured bank rating for Regal Cinemas Corp. and the Ba3 corporate family rating for Regal Entertainment Group in light of the expected repayment of a portion of Regal Entertainment's 3¾% convertible notes with increased bank debt at Regal Cinemas.

Moody's also affirmed the B3 rating on Regal Entertainment's convertible notes, and the outlook remains stable.

The transaction does not increase Regal's total debt. Despite the reduction in junior capital, Moody's said it believes the secured bank rating, one notch higher than the corporate family rating, remains appropriate.

Bank lenders benefit from junior capital provided by Regal's substantial operating leases, as well as a modest amount of junior debt on the balance sheet.

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