We believe the drastic economic slowdown and secular headwinds will weigh on video commerce and online retailer Qurate Retail Inc.'s efforts to turnaround operations this year. As a result, we now expect revenues and profits will contract, and leverage will rise above our 4x downgrade threshold. We are lowering our issuer credit rating on Qurate to 'BB-' from 'BB'. The outlook is negative. We are also lowering our issue-level rating on subsidiary QVC Inc.'s secured debt to 'BB+' from 'BBB-'. The recovery ratings remain '1'. The negative outlook on Qurate reflects the potential for a lower rating if a prolonged decline in consumer spending on the company's discretionary merchandise mix and intensified competitive conditions lead to sustained performance weakness. The
