Research Update: National Amusements Inc. Upgraded To 'B' On Reduced Cash Burn And Significant Borrowing Capacity, Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: National Amusements Inc. Upgraded To 'B' On Reduced Cash Burn And Significant Borrowing Capacity, Outlook Stable

Research Update: National Amusements Inc. Upgraded To 'B' On Reduced Cash Burn And Significant Borrowing Capacity, Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: National Amusements Inc. Upgraded To 'B' On Reduced Cash Burn And Significant Borrowing Capacity, Outlook Stable
Published Aug 30, 2021
6 pages (2400 words) — Published Aug 30, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Theater operator National Amusements Inc. (NAI)'s cash burn is improving at a faster rate than its peers due to its lower rent expenses and the dividend income from its ViacomCBS Inc. stock holdings. While the recovery in theater attendance has been slow due to ongoing concerns related to COVID-19, we believe the value of the company's ViacomCBS holdings provides it with significant collateral and borrowing capacity to offset any near-term risks. We raised our issuer credit rating on NAI to 'B' from 'B-' and our issue-level rating on its senior secured term loan to 'BB-' from 'B+'. The stable outlook reflects our expectation that the company's ownership stake in ViacomCBS will provide it with significant collateral value and sufficient borrowing

  
Brief Excerpt:

...- Theater operator National Amusements Inc. (NAI)'s cash burn is improving at a faster rate than its peers due to its lower rent expenses and the dividend income from its ViacomCBS Inc. stock holdings. - While the recovery in theater attendance has been slow due to ongoing concerns related to COVID-19, we believe the value of the company's ViacomCBS holdings provides it with significant collateral and borrowing capacity to offset any near-term risks. - We raised our issuer credit rating on NAI to 'B' from 'B-' and our issue-level rating on its senior secured term loan to '##-' from 'B+'. - The stable outlook reflects our expectation that the company's ownership stake in ViacomCBS will provide it with significant collateral value and sufficient borrowing capacity to address any potential liquidity needs over the next 12 months....

  
Report Type:

Research Update

Ticker
2341170Z
Issuer
National Amusements Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: National Amusements Inc. Upgraded To 'B' On Reduced Cash Burn And Significant Borrowing Capacity, Outlook Stable" Aug 30, 2021. Alacra Store. May 14, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-National-Amusements-Inc-Upgraded-To-B-On-Reduced-Cash-Burn-And-Significant-Borrowing-Capacity-Outlook-Stable-2713456>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: National Amusements Inc. Upgraded To 'B' On Reduced Cash Burn And Significant Borrowing Capacity, Outlook Stable Aug 30, 2021. New York, NY: Alacra Store. Retrieved May 14, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-National-Amusements-Inc-Upgraded-To-B-On-Reduced-Cash-Burn-And-Significant-Borrowing-Capacity-Outlook-Stable-2713456>
  
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