TEXT-S&P rates National CineMedia

Wed May 2, 2012 12:48pm EDT

May 2 - Standard & Poor's Ratings Services today assigned ratings to the
extended portion of Centennial Colo.-based 	
theater advertising company National CineMedia LLC's senior secured revolving 	
credit facility; the company is extending $105 million of the revolver to 	
2017. We assigned the extended portion of the revolver our issue-level rating 	
of 'BB-' (at the same level as our 'BB-' corporate credit rating on the 	
company) with a recovery rating of '3', indicating our expectation of 	
meaningful (50% to 70%) recovery for lenders in the event of a payment default.	
	
We rate operating company National CineMedia LLC and its parent, National 	
CineMedia Inc., on a consolidated basis. The corporate credit rating on
the 	
company is 'BB-' and the rating outlook is stable. The 'BB-' rating reflects 	
our expectation that National CineMedia should be able to maintain leverage in 	
the mid-3x area over the intermediate term, despite its aggressive dividend 	
policy. We consider the company's business risk profile as "fair" (as per our 	
criteria), based on its historically strong EBITDA margin and good market 	
position. A high dividend payout and minimal cash retention by the operating 	
subsidiary underpin our view that the company's financial risk profile is 	
"aggressive." Although the company's credit metrics deteriorated slightly in 	
the fourth quarter of 2011 because of weak advertising demand, we expect 	
revenue and EBITDA to grow at a low- to mid-single-digit percentage rate in 	
2012. (For the latest complete corporate credit rating rationale, see Standard 	
& Poor's research report on National CineMedia published April 18, 2012.)	
	
RELATED CRITERIA AND RESEARCH	
     -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009	
     -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009	
     -- Standard & Poor's Revises Its Approach To Rating Speculative-Grade 	
Credits, May 13, 2008	
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008	
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008	
	
	
RATINGS LIST	
	
National CineMedia Inc.	
National CineMedia LLC	
 Corporate Credit Rating                 BB-/Stable/--	
	
New Ratings	
	
National CineMedia LLC	
 $105M extended revolver due 2017        BB-	
   Recovery Rating                       3