Debt ratings agency S&P Global Ratings on Thursday reduced AMC Entertainment's credit ratings on liquidity concerns should the closure of the mega-exhibitor's theaters amid the COVID-19 crisis continue deep into the summer.
The ratings agency said it expected AMC's theaters to remain closed beyond June. "We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer, and we believe the company will likely breach its 6x net senior secured leverage covenant when tested on Sept.
30, 2020, absent a waiver from its lenders," S&P Global said in a ratings note. The agency downgraded AMC's credit rating to CCC-, from B, with a negative outlook.