...April 22, 2020 CHICAGO (S&P Global Ratings) April 22, 2020--S&P Global Ratings today assigned its '##-' issue-level rating and '3' recovery rating to Netflix Inc.'s proposed senior unsecured notes. The company will split the the issuance between a dollar-denominated tranche and a euro-denominated tranche. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery of principal in the event of a payment default. Netflix plans to use the net proceeds from these notes for continued investments in original content and general corporate purposes. Pro forma for the debt issuance, the company's adjusted leverage was 4.4x as of Dec. 31, 2019, and we expect its leverage to decline to the mid-3x area by the end of 2020. We also expect Netflix's free operating cash flow (FOCF) deficits to improve to about $1.0 billion in 2020 from $3.3 billion in 2019 due to stronger subscriber growth and lower spending on content due to production shutdowns stemming...
