S&P affirms Carmike

Standard & Poor's said it affirmed its B- corporate credit rating on Carmike Cinemas Inc. and revised the outlook to stable from developing.

The outlook revision followed the company's filing of its SEC Form 10-K, S&P said, noting that the company has filed its 10-K within the required window of time despite a change in auditor and has made good progress in remediating some of its material weaknesses in its internal controls, but operating performance has been weak.

The ratings reflect high lease-adjusted leverage, a less modern theater circuit compared with key peers, participation in the mature and highly competitive U.S. movie exhibition industry, exposure to the fluctuating popularity of Hollywood films and regions of operation with narrower film preferences, the agency added.

S&P said they also reflect its longer term concern that U.S. movie theater attendance will be pressured by the proliferation of competing entertainment alternatives and shortening periods in theatrical release prior to home video and video-on-demand release.

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