S&P rates AMC notes CCC+

Standard & Poor's said it assigned its CCC+ rating to AMC Entertainment Inc.'s proposed offering of up to $550 million in senior subordinated notes due 2014. At the same time, S&P affirmed its B corporate credit rating on the company.

The outlook is positive.

Proceeds will be used to pay off existing subordinated notes and related call premiums, fees, and expenses.

S&P said the ratings reflect AMC's financial risk as its heavy reliance on lease financing result in high lease adjusted leverage, an elevated fixed cost structure, and modest cash flow. Ratings also reflect AMC's modern theater circuit and the mature and competitive nature of the industry.

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