S&P Downgrades Cinemark Credit Rating to ‘Highly Speculative’

”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.

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Trey Williams

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