S&P Global on Thursday downgraded its credit rating for AMC Entertainment to CCC- from B, which takes the company from “Highly speculative” to “Default imminent, with little prospect for recovery.”
AMC has been rocked as a result of the novel coronavirus pandemic, which has forced all movie theaters to close and Hollywood studios to either push film releases past the pivotal summer months or take them off the slate for 2020 altogether.
AMC is the nation’s largest cinema chain, and it’s drowning in debt. The company reported a $5 billion-plus deficit at the end of 2019 and losses of $149 million for the year (after recording a $110 million profit in 2018).
"We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer," S&P analysts wrote