Our 'B+' rating on National Amusements Inc. (NAI) is derived from: Our anchor of 'b' based on our "vulnerable" business risk and "aggressive" financial risk profile assessments for the company. Our assessment of strong liquidity and positive comparable rating analysis, partially offset by weak management and governance, results in a one notch higher rating. All other analytical modifiers had no impact on the rating. Relatively low EBITDA margin compared with peers; Mature and highly competitive U.S. movie exhibition industry; Exposure to technology innovations that are spawning new entertainment alternatives and facilitating film piracy; and Good movie theater franchise in the northeast U.S., U.K., Brazil, and Argentina. High debt leverage; Minimal discretionary cash flow; and 79.4% voting interest in Viacom Inc.
