The rating on 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, extremely high leverage and interest costs, and a weak EBITDA margin compared to movie exhibitor peers. We view National Amusements' business risk profile as vulnerable because of its below peer average operating measures, and we view its financial risk profile as aggressive because of its very high debt to EBITDA. Flexibility afforded by NAI's and operating subsidiary, NAI Entertainment Holdings LLC's (NAIE) consolidated holdings of Viacom Inc. and CBS Inc. voting common stock, together with excess cash balances, represent a key support to the rating. The consolidated company is a
