S&P affirms AMC, Marquee

Standard & Poor's said it affirmed its ratings, including the B corporate credit ratings, on AMC Entertainment Inc. and its parent company, Marquee Holdings Inc. and removed them from CreditWatch.

The ratings were originally placed on CreditWatch with negative implications on July 12, 2006, based on expectations for continuing high leverage, S&P noted, adding that the affirmation reflects the modest reduction in debt leverage resulting from the recent partial sale of AMC's stake in National CineMedia Inc.

The outlook is stable.

According to the agency, the rating on AMC reflects the company's still-high leverage and its lower EBITDA margins relative to peers and it also considers the company's participation in the mature and highly competitive U.S. movie exhibition industry, exposure to the fluctuating popularity of Hollywood films and risk of increased competition resulting from the proliferation of entertainment alternatives and from shortening movie release windows.

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