S&P gives AMC B, loan CCC+

Standard & Poor's said it assigned a B corporate credit rating and stable outlook to AMC Entertainment Holdings Inc., the new super-holding company of Marquee Holdings Inc. and ultimate parent of operating company AMC Entertainment Inc.

The agency said it also assigned a CCC+ rating to AMC Entertainment's proposed $400 million senior unsecured pay-in-kind term loan facility due 2012 and a CCC+ rating to its 364-day $275 senior unsecured PIK term loan due 2008.

At the same time, S&P said it affirmed its issue ratings on AMC Entertainment Inc. and its parent company, Marquee Holdings.

"The rating on AMC reflects the company's high tolerance for financial risk, its high leverage and its lower EBITDA margins relative to peers," said S&P credit analyst Tulip Lim.

"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 as entertainment alternatives proliferate and movie release windows shorten."

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