A mid the coronavirus pandemic, Hollywood giants face a catastrophic earnings hit this year, and debt burdens are in renewed focus as ratings agencies are busy exploring or handing out downgrades. AT&T, for one, shelved a $4 billion stock buyback deal to boost its financial flexibility, with other companies expected to follow suit. As of March 19, S&P Global noted 23 virus-related rating actions, which includes downgrades, for North American media and entertainment firms, including the likes of Disney, National Amusements, Endeavor and its subsidiary UFC, AMC Theatres and Cinemark. “Right now, it’s all about liquidity,” Moody’s analyst Neil Begley says.
Exhibitors are most at risk from high debt burdens and fixed costs, such as theater leases, while revenue is wiped out because of cinema closures. Regal owner Cineworld, which…