On October 29, 2020, Moody's Investors Service downgraded its corporate family rating on National CineMedia, Inc. to Caa1 from B2, its probability of default rating to Caa1-PD from B2-PD, its Senior Secured Bank Credit Facility to B3 from B1, its Senior Secured Regular Bond/Debenture, downgraded to B3 from B1 and its Senior Unsecured Regular Bond/Debenture to Caa3 from Caa1.

The Company’s rating reflects the expected deterioration in operating performance because of temporary theatre closings and uncertainty about the timing of a rebound in attendance and a limited liquidity cushion. The rating is also constrained by secular trends within the cinema industry that may continue to lead to declining attendance, the need to continue to invest in digital offerings and a concentrated revenue base, according to the ratings agency. Absent a sharp rebound in attendance levels, Moody's expects the Company to burn cash over at least the next two quarters, which will reduce the Company's cash position.

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