Moody’s might lower AMC

Moody's Investors Service said it placed AMC Entertainment Holdings, Inc.’s B1 corporate family rating, B1-PD probability of default rating, Ba1 senior secured rating and B2 senior subordinate rating under review for downgrade.

Additionally, the agency placed the Ba1 senior secured notes rating at Carmike Cinemas, Inc. on review for downgrade.

Moody’s said the action follows AMC's worse than expected Q2 and Q3 results, in addition to consecutive and material downward revisions to 2017 guidance including projected revenue and EBITDA.

The review will focus on adjustments to the agency’s modeling assumptions based on its revised outlook of the U.S. and European box office over the next 12 to 18 months, the probability management will successfully execute on its operational, strategic and financial plans and the potential benefit, and the potential impact of selling a portion of its European assets to the public.

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