- The stock price of AMC Entertainment Holdings Inc (NYSE: AMC) increased by 15.39% yesterday. These are the details.
The stock price of AMC Entertainment Holdings Inc (NYSE: AMC) increased by 15.39% yesterday. Investors are responding positively to AMC Entertainment getting a credit-rating upgrade by analysts at S&P Global Ratings.
S&P Global Ratings analysts said that AMC is now less likely to default after the company raised cash through equity markets. S&P Ratings upgraded the rating of AMC by two notches to CCC+ from CCC-. However, this rating still keeps AMC within a high-risk. AMC has raised $1.8 billion in total equity so far, including $818 million alone last week.
“If the company uses the majority of these proceeds for debt reduction and refinances the expensive debt raised during the pandemic, it will materially reduce its interest burden, cash burn, and leverage,” said S&P Global Ratings credit analyst Scott Zari in a statement. “This, coupled with our expectation that theater attendance will likely significantly improve in the second half of 2021, provides a path to a sustainable capital structure.”
AMC was able to raise capital as it was targeted for multiple short squeezes by retail investors active on social media over the last few months. It is part of a group of companies that is heavily favored by the WallStreetBets community on Reddit.
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