“We continue to believe Cinemark will have more than sufficient liquidity to fund its operations until theaters return to normalized attendance” S&P analysts say
Standard & Poors Global Ratings on Monday downgraded Cinemark’s credit rating to B+ from BB-, putting the theater operator’s borrowing power at “highly speculative.”
Cinemark reported a loss of $170 million for its most recent second quarter. The theater chain said it had $571 million of cash on hand as of June 30, with a cash burn at roughly $50 million per month. Cinemark began reopening some of its theaters late last month and will continue to reopen theaters later this week.