S&P downgrades Cineworld

S&P said it lowered its long-term issuer credit rating on Cineworld Group plc and the issue ratings on its debt to CCC- from CCC+ and assigned a negative outlook.

“The negative outlook reflects the uncertainty on whether Cineworld would be able to stabilize its cash flow and liquidity and obtain additional financing and a covenant waiver. It also reflects the potential risk of a distressed debt exchange,” S&P said in a news release.

“We believe there is an increased likelihood that Cineworld could default over the next few months due to its weak liquidity and highly uncertain operating conditions.”

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