Moody's affirms Marquee

Moody's Investors Service said it affirmed Marquee Holdings Inc.'s corporate family rating at B1 and its 12% senior notes due 2014 at B3 (LGD6, 95%).

The agency also affirmed AMC Entertainment Inc.'s 8 5/8% senior notes due 2012 at Ba3 (LGD3) and changed the loss-given-default rate to 42% from 35%, affirmed its 11% senior subordinated notes due 2016 and 8% senior subordinated notes due 2014 at B3 (LGD5) and changed the loss-given-default rate to 83% from 81%, and affirmed its senior secured bank credit facility at Ba1 (LGD2) and changed the loss-given-default rate to 15% from 11%.

The outlook is stable.

The affirmation follows the redemption of AMC's floating-rate senior notes due 2010, 9 7/8% senior subordinated notes due 2012 and 9½% senior subordinated notes due 2011 with the proceeds from the National CineMedia, Inc. The redemption of $600 million AMC bonds improved Marquee's credit profile and reduced is debt-to-EBITDA ratio to the mid 6x range from more than 7x.

The agency said Marquee's B1 corporate family rating reflects high leverage, sensitivity to product from movie studios and a weak industry growth profile, offset by strong liquidity and the advantages of scale and geographic diversity.

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