Moody's rates Entertainment Properties Baa3

Moody's Investors Service said it assigned a provisional Baa3 senior unsecured debt rating and a Baa3 issuer rating to Entertainment Properties Trust.

The outlook is stable.

The ratings are contingent upon successful completion of Entertainment Properties' recently announced 144A private placement offering of senior unsecured notes, Moody's said.

The proceeds, combined with its new $320 million senior unsecured revolving credit facility, will be used to pay off the outstanding borrowings on its secured credit facility, term loan and the mortgage loan on its Toronto Dundas Square property.

The ratings reflect the company's market leadership in the theater industry, high quality megaplex theater assets, solid coverage metrics and moderate leverage levels, Moody's said.

These credit strengths are counterbalanced by its material exposure to movie theater operator, AMC Entertainment, and its charter school business, the agency said.

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