Los Gatos, Calif.--based Netflix Inc. faces high operating risk in the video rental industry. Netflix is adding debt to capital structure. We are assigning our 'BB-' corporate credit and senior unsecured ratings. Our stable outlook reflects Netflix's good market presence, combined with its strong balance sheet and good cash-flow-generation capabilities. On Oct. 28, 2009, Standard&Poor's Ratings Services assigned its 'BB-' corporate credit rating to Los Gatos, Calif.--based Netflix Inc. At the same time, we assigned a 'BB-' rating and a '3' recovery rating to the company's proposed $200 million unsecured notes that matures in 2017. The notes will be issued under rule 144A with registration rights. The '3' recovery rating indicates that lenders can expect meaningful recovery of
