"Given our expectations for a high rate of cash burn, we believe the company will run out of liquidity within the next six months unless it is able to raise additional capital, which we view as unlikely, or attendance levels materially improve," said the agency.

"The negative outlook reflects our view that a default, distressed exchange, or redemption appears to be inevitable within six months, absent unanticipated significantly favorable changes in the issuer's circumstances."

Box office sales have cratered in the wake of the COVID-19 pandemic, despite 70% of US movie theaters estimated to have re-opened with social-distance seating as of Labor Day.

After major theater re-openings on Labor Day pulled in a collective $28.4 million for 25 film releases, according to IMDB's Box Office Mojo.com, the next two following weekends saw declines: $12.6 million for 24 releases (September 11-13) and $11.3 million for 28 releases (September 18-20). -MediaDailyNews

In July, AMC completed a debt restructuring with bondholders which saw $200 million in fresh cash, as well as the purchase of $100 million in new senior notes by the Silver Lake Group. The chain also raised $77 million by selling nine theaters in Europe's Baltic region.