S&P Downgrades AMC Entertainment for 2nd Time in 2 Months
AMC Entertainment’s “liquidity gap” amid COVID-19's theater closures and low box-office attendance spurred S&P to downgrade the company to CC from CCC-, its second demotion in two months. AMC expects to burn at least $750 million of cash in 2021,…
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“assuming attendance returns to 20% of 2019 levels in the first half of the year and increases to 85% in the second half,” said S&P Wednesday. “Attendance is unlikely to return to these levels in 2021 and we anticipate that the company may need up to $1 billion of incremental capital.” It likely will be difficult for AMC to land “this level of capital outside of a debtor-in-possession financing and thus expect further debt restructurings,” it said. AMC didn’t respond to questions Thursday.