S&P gives New Cineworld B-, loans B+, B-

S&P said it assigned New Cineworld Midco Ltd. a B- issuer rating, B+ issue and 1 recovery ratings to its super senior $250 million revolver due 2027 and B- issue and 3 recovery ratings to its $1.62 billion senior secured term loan due 2028. The outlook is stable.

Cineworld emerged from Chapter 11 bankruptcy in July as a subsidiary of New Cineworld Midco Ltd. The company emerged with $223 million of cash and with $150 million of availability on its revolver.

“The B- rating on New Cineworld Midco Ltd. reflects our expectation of high, albeit improving, leverage, and a sound recovery in operating performance over the next 12-24 months. The new Cineworld group's debt is considerably lower than prior to the bankruptcy, although adjusted leverage at emergence remained high at over 6x,” S&P said in a press release.

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