S&P: Kerasotes on watch

Standard & Poor's said it placed its ratings on Kerasotes Showplace Theatres LLC and Kerasotes Showplace Theatres Holdings LLC, including the B corporate credit rating, on CreditWatch with negative implications.

The agency noted the negative CreditWatch listing for Kerasotes reflects concern about its liquidity in light of its very thin margin of compliance with its bank financial covenants at second-quarter end and the need to maintain substantial borrowing availability to fund its aggressive theater upgrade and expansion program.

S&P said the action also reflects concern about pressure on the company's EBITDA and cash flow resulting from the sharp drop in U.S. movie attendance in the 2005 summer season.

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