NEW YORK (Standard&Poor's) March 30, 2005--Standard&Poor's Ratings Services said today that its ratings and outlook on Blockbuster Inc. (BB/Stable/--) are not affected by the company's announcement of a material weakness in its internal controls under Section 404 of the Sarbanes-Oxley Act. The material weakness relates to deficiencies in the company's controls over the selection and application of its accounting policies, which failed to identify misstatements in property and equipment, deferred rent liability, rent expense, and depreciation expense. Blockbuster agreed with the conclusions of auditor PricewaterhouseCoopers LLP and recorded adjustments, which resulted in restatements of the company's 2003 and 2002 annual financial statements, as well as adjustments to its fourth-quarter 2004 results. Standard&Poor's does not
