Refinancing provides meaningful improvement in Dallas, Texas-based Blockbuster Inc.'s liquidity position, and operational flexibility is likely to benefit from enhanced liquidity. We are raising our corporate credit rating to 'B-' from 'CCC'. The stable outlook reflects our belief that liquidity will remain adequate over the near term despite continued operational weakness and moderate deterioration of the company's credit protection metrics. On Sept. 16, 2009, Standard&Poor's Ratings Services raised its corporate credit rating on Blockbuster Inc. to 'B-' from 'CCC'. The outlook is stable. At the same time, we assigned a 'B' rating to the company's $675 million senior secured notes with a recovery rating of '2', indicating our expectation for substantial (70%-90%) recovery in the event of payment
