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 industrywide 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
