Netflix Inc. $1.5 Billion Senior Unsecured Notes Rated 'B+' (Recovery Rating '3')

CHICAGO (S&P Global Ratings) April 23, 2018--S&P Global Ratings today assigned its 'B+' issue-level and '3' recovery ratings to Netflix Inc.'s proposed $1.5 billion senior unsecured notes due in 2028. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default. The company plans to use the net proceeds of the debt issuance to fund continued investment in original content and for general corporate purposes. Our 'B+' corporate credit rating and positive rating outlook on Netflix are not affected by the proposed transaction. Pro forma for the debt issuance, the company's adjusted leverage will remain about 4.1x (as of March 31, 2018). However, we expect adjusted leverage to

...CHICAGO (S&P Global Ratings) April 23, 2018--S&P Global Ratings today assigned its 'B+' issue-level and '3' recovery ratings to Netflix Inc.'s proposed $1.5 billion senior unsecured notes due in 2028. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default. The company plans to use the net proceeds of the debt issuance to fund continued investment in original content and for general corporate purposes. Our 'B+' corporate credit rating and positive rating outlook on Netflix are not affected by the proposed transaction. Pro forma for the debt issuance, the company's adjusted leverage will remain about 4.1x (as of March 31, 2018). However, we expect adjusted leverage to increase slightly to the low- to mid-4x area as Netflix continues to borrow to invest heavily in content in 2018. The corporate credit rating and positive outlook reflect our expectation that Netflix will continue its significant...

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