Moody's rates Kerasotes loan B1

Moody's Investors Service said it assigned B1 ratings for the proposed $300 million of senior secured credit facilities being arranged for Kerasotes Showplace Theatres LLC, including a $200 million senior secured term loan due 2011 and a $100 million senior secured revolver due 2010.

Moody's also assigned a B1 senior implied rating and a B3 issuer rating. The outlook is stable.

According to Moody's, the ratings reflect concerns about the company's relatively small scale in comparison to its peers and competitors; concentration of cash flow generating assets in a relatively small number of properties; and geographic concentration of its theater base in the upper Midwest.

However, the company's comparatively less leveraged balance sheet relative to its rated industry peer group, reasonably good operating performance and relatively modern and improving base of assets in markets with somewhat limited competition lend support to the assigned ratings.

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