...October 21, 2019 CHICAGO (S&P Global Ratings) Oct. 21, 2019--S&P Global Ratings today assigned its '##-' issue-level rating and '3' recovery ratings to Netflix Inc.'s proposed approximately $2 billion senior unsecured notes due 2030. The company will split the notes between a dollar-denominated tranche and a euro-denominated tranche. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery of principal in the event of a payment default. Netflix plans to use the net proceeds from the notes for continued investments in original content and general corporate purposes. Pro forma for the debt issuance, the company's adjusted leverage is 4.0x (as of Sept. 30, 2019) and we expect it to remain around 4x through the end of 2019. Our '##-' issuer credit rating on Netflix reflects our expectation for continued EBITDA margin improvement driven, in part, by price increases and continued subscriber growth. These factors demonstrate the strength of the...
