S&P Global Ratings downgraded its long-term issuer credit rating on Cinemark Holdings Inc. to B from B+ and removed all ratings from CreditWatch with negative implications.

The rating agency thinks global cinema attendance will not begin to recover until 2021 due to continued delays of film releases by major studios and the risk that global authorities could impose stricter lockdown measures to limit local resurgences of the virus.

The outlook on the company was revised to negative, reflecting the risk that the "coronavirus' effects may last longer than expected and/or the shift toward direct-to-consumer distribution could accelerate, which could permanently deteriorate the exhibitors' business and Cinemark's credit metrics."

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.