Moody's: Carmike outlook stable

Moody's Investors Service said it confirmed Carmike Cinemas, Inc.’s corporate family rating at B2, probability of default rating at B2-PD, senior secured first-lien revolver due 2020 at Ba2 (LGD1) and senior secured second-lien notes due 2023 at B1 (LGD3) and affirmed its speculative grade liquidity rating at SGL-1. The outlook is stable.

These actions conclude the review for upgrade that began on June 16 upon the adoption of Moody's updated approach for standard adjustments for operating leases.

The agency said Carmike's B2 corporate family rating incorporates the company's smaller market share and higher leverage relative to its peers, a liberal use of operating cash flow and the constraints imposed by a mature industry experiencing a secular decline in attendance.

Positively, the company is the one of the largest operators in the United States and benefits from barriers to entry and good liquidity, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.