On Feb. 3, 2005, Standard&Poor's Ratings Services said that its ratings on Blockbuster Inc., including the 'BB' corporate credit rating, remain on CreditWatch with negative implications. The ratings were initially placed on CreditWatch Nov. 11, 2004, when Blockbuster offered to purchase Hollywood Entertainment Corp. (B+/Watch Dev/--). This CreditWatch update follows Blockbuster's Feb. 2, 2005, announcement that it has increased its bid to $14.50 per share of Hollywood stock, comprised of $11.50 in cash and $3.00 in Blockbuster Class A common stock. Total considerations are estimated to be more than $1.3 billion, which is above the company's $1.05 billion previous offer. Blockbuster's current bid is also above Movie Gallery's $13.25 per share offer. The CreditWatch negative listing on Blockbuster
