On Aug. 6, 2004, Standard&Poor's Ratings Services assigned its 'B+' rating to Blockbuster Inc.'s proposed $300 million subordinated notes due 2012. Proceeds from the notes offering, together with a new credit facility, will be used to pay a special dividend to shareholders. On June 18, 2004, the company received financing commitments for a new $1.45 billion credit facility. The size of the new credit facility will be reduced to $1.15 billion upon issuance of the subordinated notes. All other ratings, including the 'BB' corporate credit rating, were affirmed. The outlook is stable. The ratings on Blockbuster reflect the risks of operating in a mature and declining video rental industry, the company's dependence on decisions made by movie studios,
