On April 13, 2009, Standard&Poor's Ratings Services lowered its corporate credit rating on Dallas-based Blockbuster Inc. to 'CCC' from 'B-'. We removed the ratings from CreditWatch with negative implications, where they were placed on March 4, 2009. At the same time, we lowered the issue-level ratings on both its secured debt to 'CCC+' from 'B' and its subordinated debt to 'CC' from 'CCC'. The outlook is negative. The downgrade reflects our concerns that the company may face liquidity issues despite amending the credit facility due to expected weaker operations and the mandatory revolver amortizations. Additionally, we remain concerned that the company's covenant cushion is likely to remain thin over the near term. The ratings on Blockbuster reflect our
