S&P ups, rates Cinemark loans BB

S&P said it upgraded its ratings for Cinemark Holdings Inc. and its unsecured debt to B+ from B and the senior secured notes to BB from BB-. S&P improved the recovery rating on the unsecured notes to 3 from 4 and left the recovery rating on the secured notes at 1.

S&P also assigned BB issue-level and 1 recovery ratings to Cinemark’s planned $125 million senior secured revolving credit facility and $650 million senior secured term loan.

“Cinemark Holdings Inc.'s revenues, profitability, and cash flows have improved significantly due to recovery of the box office, reducing leverage to 4.3x as of March 31, 2023, well below our 5x upgrade threshold for the B rating,” the agency said in a statement.

Cinemark plans to use the loans to refinance its debt and extend maturities.

The outlook is positive.

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