S&P rates Cinemark loans BB+, notes BB-

Standard & Poor's said it assigned Cinemark USA Inc.'s proposed $700 million term loan due 2019 and $100 million revolving credit facility due 2017 a BB+ issue-level rating.

The agency also assigned the loan a recovery rating of 1, indicating an expectation for very high recovery for senior secured lenders in the event of payment default.

S&P said it assigned the company's proposed senior notes due 2022 a BB- issue-level rating with a recovery rating of 4. The recovery rating indicates an expectation for average recovery for senior note lenders in the event of payment default.

At the same time, the agency said it revised the recovery rating on the company's senior notes due 2019 to 4 from 5 and consequently raised its issue-level rating on this debt to BB- from B+.

All other ratings, including the BB- corporate credit rating on Cinemark, were affirmed. The outlook is stable.

S&P said it analyzes Cinemark Holdings Inc. and subsidiary Cinemark USA Inc. on a consolidated basis. The corporate credit rating on Cinemark Holdings Inc. reflects S&P's expectation that leverage and capital spending will remain relatively high, but that Cinemark will continue to be among the most profitable theater chains, despite potential for some slowing of its long-term growth.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.