... (IDR) at `B' is supported by its 73% Canadian box office market share, diverse revenue streams and effective entertainment ecosystem monetization. The rating also reflects its smaller scale, historically lower adjusted EBITDA margins and weaker free cash flow (FCF) compared to U.S. peers. Despite high leverage, there is potential for deleveraging as attendance is expected to recover this year with a promising film slate. The Negative Outlook reflects concerns about achieving margin gains post-2024 film supply disruption, maintaining attendance levels amid rising streaming competition, especially for smaller-format movies and adapting to a more streamlined film release schedule....
