On Dec. 14, 2006, Standard&Poor's Ratings Services revised its outlook on video rental retailer Blockbuster Inc. to stable from negative. The ratings on the Dallas-based company, including the 'B-' corporate credit rating, were affirmed. The outlook revision is based on the company's strengthened cash flow protection measures as a result of its cost reduction efforts and lower advertising and promotional expenses. Total debt to EBITDA declined to 5.6x in 12 months ended Sept. 30, 2006, from 8.9x, a year earlier, and EBITDA coverage of interest increased to 1.9x from 1.4x. The operating margin increased to 16.7% in the first nine months of 2006, from 11.7% a year earlier. Although cash flow protection measures are still weak, Standard&
