NEW YORK (Standard&Poor's) Dec. 16, 2005--Standard&Poor's Ratings Services said today it assigned a recovery rating of '5' to Blockbuster Inc.'s $1.15 credit facility due in 2011, reflecting Standard&Poor's expectation that the lenders will receive negligible (0%-25%) recovery of principal in the event of a payment default. At the same time, Standard&Poor's affirmed all other ratings. The ratings on Dallas, Tex.—based Blockbuster reflect the risks of operating in a mature and declining video rental industry, the company's dependence on decisions made by movie studios, increased operating risk due to the elimination of late fees, and the growth of its low-margin subscription product. Other factors include its high leverage and the technology risks associated
