Given the competitive pressures in the rapidly evolving domestic media entertainment industry, we have revised our view on the prospects for Blockbuster's operating performance in 2010 and beyond. We are lowering our rating on the company to 'CCC' from 'B-'. At the same time, we are also revising our recovery ratings on the company's senior secured debt to '3' from a '2' and lowering the issue level rating on the debt to a 'CCC' from a 'B'. In addition, we are revising the recovery rating on the company's subordinated debt to a '6' from a '5' and lowering the issue level rating on the debt to a 'CC' from a 'CCC+'. The negative outlook reflects our expectations for performance to
