...CHICAGO (S&P Global Ratings) Oct. 22, 2018--S&P Global Ratings today assigned its '##-' issue-level and '3' recovery ratings to Netflix Inc.'s proposed approximately $2 billion senior unsecured notes due in 2029. The notes will be split between a dollar-denominated tranche and a euro-denominated tranche. 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 for continued investment in original content and general corporate purposes. Pro forma for the debt issuance, the company's adjusted leverage will remain about 4.3x (as of Sept. 30, 2018). However, we expect adjusted leverage to increase slightly to about 4.8x by the end of 2018 as Netflix continues to invest heavily in content. The '##-' issuer-credit rating on Netflix reflects the company's improving EBITDA margin performance over the last 12 months, driven in part by price increases and continued...
