By Josh Beckerman

S&P Global said AMC Entertainment Holdings Inc.’s recently completed bond exchange reduces its interest burden and lowers the risk of a default, but said AMC’s capital structure remains unsustainable.

S&P raised its rating for the movie theater chain to CCC+ from SD, and is placing AMC’s ratings on CreditWatch with negative implications, reflecting uncertainty about the timing of its reopening plans.

On Thursday, AMC reported a $561 million second-quarter loss as revenue fell 98.7% to $19 million.

AMC shares rose 15% to $4.75 Friday.

S&P discussed the risks to the industry from Walt Disney Co.’s launch of “Mulan” on Disney+. This provides a test case that, if successful, “could embolden Disney and other studios to bypass the theaters and increasingly distribute larger films directly to PVOD,” S&P said.

Write to Josh Beckerman at josh.beckerman@wsj.com