U.S.-based online video service provider Netflix Inc. is planning to issue $1.6 billion senior unsecured notes. Our assessment of Netflix's business risk profile has improved due to its strong subscriber growth, but the company's comfort with growing negative free cash flow from its large original content investments constrains the corporate credit rating. We are affirming our ratings on Netflix, including the 'B+' corporate rating credit rating, and assigning our 'B+' issue-level and '3' recovery ratings to the proposed $1.6 billion senior unsecured notes due 2028. The stable rating outlook reflects our expectation that Netflix's revenue will increase in excess of 20% and its adjusted EBITDA margin will expand by 200 basis points (bps) to 300 bps in each of the
