Standard & Poors has lowered the credit rating of AMC Theaters, and they do not believe the chain will recover from the damage done by the latest pandemic of the coronavirus that has shut cinemas around the world and that distributors have been forced to look for alternative ways to bring their films to the public. AMC, which was already in serious debt, would possibly face grave financial difficulties in the fall, unless creditors extend them a serlious life-line, according to Standard & Poors, which assists in setting the credit rating for major companies and administrations.
AMC’s creditors may be more likely than usual to grant such a waiver — after all, the COVID-19 impact has hit virtually everyone. Still, it seems likely that AMC will face an uphill battle in recovering from the losses. Last year at this time, the domestic box office was generating about $200 million in revenue per week. Now, it’s a few thousand dollars from the handful of places where theaters are still open.
But what do you think? Do you think AMC can survive this without outside help? Leave your comments below!
Source Credit: comicbook.com