AMC Theatres Credit Rating Downgraded Again by S&P Global, With Default Imminent

S&P Global Ratings on Friday downgraded movie theater chain AMC Entertainment’s credit rating to CCC- from CCC+, putting the chain’s borrowing power in junk territory and suggesting it’s at risk of imminent default with little prospect for recovery. Exhibitors have continued to struggle as Hollywood studios haven’t been able to entice audiences to flock back to cinemas amid the ongoing novel coronavirus pandemic. Warner Bros., Universal and Disney recently pushed the releases of expected fall blockbusters to next year following a tepid turnout for Warner Bros.’ “Tenet,” which many hoped would help reignite the box office. Approximately 70% of theaters nationwide have reopened since the end of August, but a combination of a lack of several strong titles and fears of contracting COVID-19 has kept audiences away. “Tenet” led the September box office charts this past month with just $41.2 million, and overall business for the month dropped 78% year-over-year. Also Read: Struggling Movie Theaters Brace for Blockbuster Drought, Pandemic Second Wave: 'October Is Going to Be Ugly' “The ongoing coronavirus pandemic will continue to have an impact on theater attendance and consumer behavior into 2021,” S&P analysts wrote. “We anticipate that global cinema attendance will recover much more slowly...

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