AMC Up 15%; S&P Says Swap Reduces Default Risk But Capital Structure Still Unsustainable
August 07 2020 - 5:59PM
Dow Jones News
By Josh Beckerman
S&P Global said AMC Entertainment Holdings Inc.'s recently
completed bond exchange reduces its interest burden and lowers the
risk of a default, but said AMC's capital structure remains
unsustainable.
S&P raised its rating for the movie theater chain to CCC+
from SD, and is placing AMC's ratings on CreditWatch with negative
implications, reflecting uncertainty about the timing of its
reopening plans.
On Thursday, AMC reported a $561 million second-quarter loss as
revenue fell 98.7% to $19 million.
AMC shares rose 15% to $4.75 Friday.
S&P discussed the risks to the industry from Walt Disney
Co.'s launch of "Mulan" on Disney+. This provides a test case that,
if successful, "could embolden Disney and other studios to bypass
the theaters and increasingly distribute larger films directly to
PVOD," S&P said.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 07, 2020 17:44 ET (21:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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