S&P rates Cinemark extended loans BB-

Standard & Poor's Ratings said it assigned the extended portion of Cinemark USA Inc.'s term loan B and revolving credit facility a BB- rating, which is one notch higher than the B+ corporate credit rating on holding company parent Cinemark Holdings Inc. The recovery rating is 2, indicating an expectation of 70% to 90% recovery in a default. The company extended maturities of 85% of its term loan to 2016 from 2013 and nearly 50% of its revolving credit facility to 2015 from 2012.

The outlook is stable.

The ratings reflect an expectation that over the near term, leverage could increase as a result of box-office declines due to difficult comparisons with 2009, S&P said.

Discretionary cash flow also is expected to be consumed by higher capital spending in 2010, the agency said.

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