- AMC Entertainment Holdings Inc (NYSE: AMC) stock price rose 15.39% yesterday. These are the details.
AMC Entertainment Holdings Inc (NYSE: AMC) stock price rose 15.39% yesterday. Investors are responding positively to the improvement in AMC Entertainment’s credit rating by S&P Global Ratings analysts.
S&P Global Ratings analysts said AMC is now less likely to default after the company raised liquidity in the stock markets. S&P Ratings upgraded AMC’s rating by two notches to CCC + compared to CCC-. However, this rating still keeps AMC in a high risk area. AMC has raised $ 1.8 billion in equity so far, including $ 818 million just last week.
“If the company uses the majority of these products for debt reduction and refinances the expensive debt incurred during the pandemic, it will significantly reduce its interest expense, cash consumption and leverage,” said Scott Zari , credit analyst at S&P Global Ratings, in a statement. “This, together with our expectation that cinema attendance will likely improve significantly in the second half of 2021, paves the way for a sustainable capital structure. “
AMC has been able to raise capital as it has been targeted by multiple short presses by retail investors active on social media in recent months. It is part of a group of companies heavily favored by the WallStreetBets community on Reddit.
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