Dallas-based Blockbuster Inc. missed its $42.4 million of payments due July 1, 2010. We lowered the corporate credit rating to 'SD' from 'CC' and senior secured rating to 'D' from 'CC'. NEW YORK (Standard&Poor's) July 2, 2010--Standard&Poor's Ratings Services lowered its corporate credit rating on Blockbuster to 'SD' from 'CC'. At the same time, we lowered our ratings on the company's $675 million 11.75% senior secured notes due Oct. 1, 2014, to 'D' from 'CC'. The recovery rating on the senior secured debt remains '3', indicating our expectation for meaningful (50%-70%) recovery for note holders. We affirm the 'C' subordinated debt rating and the recovery rating for these notes remains '6', indicating our expectation for negligible
