NEW YORK (Standard&Poor's) Aug. 6, 2007--Standard&Poor's Ratings Services said today it lowered its ratings on Dallas-based Blockbuster Inc. to 'B-' from 'B'. The outlook is negative. "The ratings action reflects deteriorating operating performance and declining credit protection metrics," said Standard&Poor's credit analyst David Kuntz, "as the company spent more on marketing and cut its fees for Total Access in response to increased competitiveness in the industry." The company also recently amended its senior secured credit agreement to avoid covenant violations. "Standard&Poor's believes Blockbuster's operating performance will remain weak," added Mr. Kuntz, "given the industry's poor fundamentals and increasing competitiveness."
