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F ollowing a similar move by Moody’s Investors Service last month, Standard & Poor’s on Monday cut its debt rating on Netflix (NFLX) and turned negative on the streaming video company’s outlook. Standard & Poor’s Ratings Services lowered its corporate credit rating on Los Gatos, Calif.-based Netflix to B+ from BB-. S&P said its outlook for Netflix is negative. S&P took the action because of Netflix’s planned offering of $1 billion in senior unsecured notes to fund the creation of original shows and its global expansion. “The downgrade and negative outlook reflect our expectation that Netflix will incur significant discretionary cash flow deficits over the next several years and that debt leverage will be high during that time,” S&P said in a press release. “Under the proposed financing plan, Netflix’s debt leverage will increase to about 5x (debt to earnings before interest, taxes, depreciation and amortization) by the… Scalper1 News
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