The rating on Norwood, Mass.-based movie exhibitor National Amusements Inc. (NAI) reflects Standard&Poor's Ratings Services' expectation that the company will continue to be subject to long-term industry-wide declines in domestic theater attendance, high leverage, and a weak EBITDA margin compared with those of its movie exhibitor peers. We view NAI's business risk profile as "vulnerable" (based on our criteria), because of its below-peer-average operating measures. We view its financial risk profile as "aggressive" because of its high debt-to-EBITDA ratio and its moderate cushion of compliance with its covenants. NAI's flexibility is enhanced through its consolidated holdings--with its operating subsidiary NAI Entertainment Holdings LLC (NAIE) of Viacom Inc. and CBS Corp. voting common stock. This, together with its excess
