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; Modest discretionary cash flow; and 9.1% economic interest in Viacom Inc. and 6.6% interest in CBS Corp., which provide some financial flexibility. The stable rating outlook reflects Standard&Poor's Ratings Services' expectation that National Amusements Inc. will continue to be exposed to ongoing volatile box-office performance, but will be able to maintain strong liquidity from its Viacom and CBS dividend income. We believe both an upgrade and a downgrade are equally unlikely over the
