U.S. Internet subscription provider Netflix's domestic net subscriber base has declined as a result of a recent price hike and negative publicity. We are lowering our corporate credit rating on the company to 'BB' with a negative outlook, from 'BB+'. The negative rating outlook reflects our view that profitability will be pressured over the intermediate term because of investments for international expansion and rising content costs. (Listen to the related podcast titled, "Netflix?s Shrinking Subscriber Base Prompts A Downgrade," dated Oct. 31, 2011.) On Oct. 27, 2011, Standard&Poor's Ratings Services lowered its rating on Los Gatos, Calif.-based Netflix Inc. to 'BB' from 'BB+'. The rating outlook is negative. At the same time, we lowered our issue-level rating on
