S&P Global has raised its credit rating for AMC Entertainment Holdings, but the mega-exhibitor remains far from taming its overall debt load, even after a recent new debt issue.

AMC saw its ratings bumped up to ‘Ccc+’, from ‘Sd’ (selective default), but has a negative outlook after the cinema chain issued a new $2 billion term loan, due 2029, and $414 million of exchangeable notes due 2030. “While AMC has extended most of its near-term maturities, we continue to view its capital structure as unsustainable due to its substantial debt burden,” S&P Global said in a statement.

On July 22, AMC said it had tackled its debt load by putting theaters and related intellectual property up as collateral to extend maturities on 2026 debt to 2029. But S&P Global says efforts to pay down an estimated $4.5 billion in long-term borrowings face industry headwinds as it attempts to ride out the pandemic and the impact...