AMC Entertainment Credit Rating Upgraded to B3 by Moody's on Debt Refinancing

Moody's Ratings has upgraded AMC Entertainment Holdings Inc.'s (NYSE:AMC) Corporate Family Rating to B3 from Caa2, citing the company's plan to refinance the majority of its outstanding debt. The ratings agency also shifted its outlook on the theater chain to Positive from Stable, signaling confidence in its improved financial footing and reduced refinancing risk.

Refinancing Plan Drives Upgrade

The rating action is a direct result of AMC's strategy to refinance nearly all of its existing debt. The plan involves issuing approximately $3.970 billion in new debt to repay about $3.7 billion of existing term loans and notes.

According to Moody's, the new debt structure will include:

• A new first-lien term loan targeted at $850 million
• Approximately $2 billion in new first-lien notes
• Roughly $1.12 billion in new privately placed second-lien term loans

In connection with the transaction, Moody's assigned a B1 rating to the new 5-year Senior Secured First-Lien Term Loan B and First-Lien Notes, both due in 2031. The company's Speculative Grade Liquidity rating was also upgraded to SGL-3 from SGL-4.

Improved Financial Profile

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The refinancing is expected to significantly strengthen AMC's financial position by pushing its weighted average debt maturity out to 6 years from approximately 3 years, according to the Moody's report. This alleviates near-term pressure, with the closest major obligation now being exchangeable notes due in 2030.

Furthermore, the transaction is projected to lower AMC's weighted average borrowing costs to approximately 9% from its current level of nearly 11%. While the plan will increase gross debt by over $170 million, Moody's views the benefits of the extended maturity and lower costs as a substantial credit positive.

Underlying Operating Strength

The upgrade is also underpinned by AMC's improving operational performance. The company's results for the first half of 2026 showed a 14% increase in attendance and 17% revenue growth, which drove a 274% increase in EBITDA compared to the first half of 2025.

Moody's noted that AMC is on track to generate positive annual free cash flow in 2026 for the first time in many years. This operational momentum has helped lower the company's leverage to approximately 5.6x adjusted debt-to-EBITDA as of the second quarter, a significant improvement from pandemic-era levels. The ratings agency anticipates leverage will continue to decline toward the mid-to-low 4x range over the next 12 to 18 months.