Dallas, Texas-based Blockbuster Inc. missed its $42.4 million of payments due July 1, 2010 on its senior secured notes. We lowered our corporate credit rating and senior secured debt rating on the company to 'D' from 'CC'. On July, 2, 2010, Standard&Poor's Ratings Services lowered its corporate credit rating on Blockbuster to 'D' from 'CC'. At the same time, we lowered our issue-level rating on the company's $675 million 11.75% senior secured notes due Oct. 1, 2014, to 'D' from 'CC'. The recovery rating on the senior secured debt remains at '3', indicating our expectation of meaningful (50%-70%) recovery for noteholders. We affirmed our issue-level rating on Blockbuster's subordinated debt at 'C'. The recovery rating on this debt
