AMC Theatres Credit Rating Downgraded Again by S&P Global, With Default Imminent

“A liquidity crisis is all but inevitable even if the company were to fully re-open all of its theaters,” analysts say

S&P Global Ratings on Friday downgraded movie theater chain AMC Entertainment’s credit rating to CCC- from CCC+, putting the chain’s borrowing power in junk territory and suggesting it’s at risk of imminent default with little prospect for recovery.

Exhibitors have continued to struggle as Hollywood studios haven’t been able to entice audiences to flock back to cinemas amid the ongoing novel coronavirus pandemic. Warner Bros., Universal and Disney recently pushed the releases of expected fall blockbusters to next year following a tepid turnout for Warner Bros.’ “Tenet,” which many hoped would help reignite the box office.

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Trey Williams

Trey Williams

Film Reporter covering the biz • trey.williams@thewrap.com • Twitter: @trey3williams