Ratings for Dallas, Texas-based Blockbuster Inc. remain on CreditWatch with negative implications. The ratings were initially placed on CreditWatch Nov. 11, 2004, when Blockbuster announced that it has offered to purchase Hollywood Entertainment Corp. (B+/Watch Dev/--) for a total consideration of $1.05 billion. The offer was subsequently raised to $1.30 billion. The negative CreditWatch listing on Blockbuster reflects the possibility that ratings could be lowered based on deterioration in Blockbuster's financial profile post-merger. Blockbuster is a leading global provider of in-home movie and game entertainment, with approximately 8,900 stores throughout the Americas, Asia, and Australia. Blockbuster is already the No. 1 player in the mature and fragmented $8.2 billion U.S. video rental market, with a 39% share in 2003. If
