On July 22, 2004, Standard&Poor's Ratings Services assigned its 'BB' rating to Blockbuster Inc.'s proposed $1.45 billion credit facilities. Proceeds from the transaction will be used to (1) refinance all amounts outstanding under the existing credit agreement; (2) pay a cash dividend to shareholders of approximately $905 million; and (3) pay transaction costs related to the special dividend, the split-off from Viacom, and the new credit facilities. A corporate credit rating of 'BB' also has been assigned to the company. The rating is based on Blockbuster's standing as an independent company after the split-off from Viacom. The outlook is stable. The ratings on Blockbuster reflect the risks of operating in a mature and declining video rental industry, the
