(Editor's note: In the version of this report released earlier today, the rating on Blockbuster was misstated. The corrected version follows.) NEW YORK (Standard&Poor's) May 12, 2005--Standard&Poor's Ratings Services said today that its ratings and outlook on Blockbuster Inc. (BB-/Negative/--) are not immediately affected by the likely election of Carl Icahn and his two dissident nominees to the company's board. Still, Standard&Poor's has heightened concern that the success of the proxy challenge could lead to changes in business strategy and/or financial policy over time. It is uncertain whether management changes will take place given that John Antioco, Blockbuster's chairman and chief executive officer, lost his board seat. It appears that a board resolution would
