S&P Global cited the exhibition giant’s cash burn rate for another ratings downgrade as the pandemic’s impact on its theaters and consumer behavior continues. Debt ratings agency S&P Global Ratings has reduced AMC Entertainment Holding’s credit ratings on liquidity concerns as the impact on the mega-exhibitor’s theaters takes a toll on its available cash on hand. “Given our expectations for a high rate of cash burn, we believe the company will run out of liquidity within the next six months unless it is able to raise additional capital, which we view as unlikely, or attendance levels materially improve,” the agency said. On Sept. 24, AMC said it would look to raise more fresh cash, in part for debt refinancings and repayments amid the coronavirus pandemic, via an equity distribution agreement for the potential issue of 15 million shares agreed with Wall Street banks. That move came as the exhibition giant looks to continue reopening its U.S. theater circuit and survive the pandemic after a debt restructuring. The debt ratings agency downgraded AMC’s credit rating to CCC-, from CCC+, on weak liquidity, and with a negative outlook. S&P Global Ratings, in March 2020 as the pandemic first took hold, signaled […]
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