Blockbuster missed its interest payments due Sept. 1, 2010 on its senior subordinated notes. We lowered our senior subordinated debt rating on the company to 'D' from 'C'. NEW YORK (Standard&Poor's) Sept. 2, 2010--Standard&Poor's Ratings Services today lowered its issue-level rating on Dallas-based Blockbuster Inc.'s $300 million 9% senior subordinated notes due Sept. 1, 2012, to 'D' from 'C'. The recovery rating on this debt is '6', indicating our expectation for negligible (0-10%) recovery for note holders in the event of a payment default. The rating downgrade follows Blockbuster's announcement that the company did not make its semiannual interest payment due Sept. 1, 2010, on the 9% senior subordinated notes. Blockbuster was prohibited from paying interest
