Scalper1 News
Netflix’s (NFLX) growing debt burden has rattled Moody’s Investors Service, which Friday downgraded the company’s debt rating and outlook. Moody’s downgraded Netflix’s Corporate Family Rating and senior unsecured debt rating to B1 from Ba3. It also changed the company’s rating outlook to stable from positive. Still, Netflix stock was up nearly 2% in midday trading in the stock market today. Netflix stock is up 25% since reporting better-than-expected Q4 results after the close Monday. Moody’s took the actions after the subscription streaming video service announced that it plans to increase its debt by at least $1 billion to fund international expansion and investment in original programming. Netflix’s risk profile will increase materially given expectations for persistent and significantly higher negative free cash flows, resulting from significant upfront payments related to original programming, Moody’s said. “This is a significant deviation from the company’s historical financial policies with regard… Scalper1 News
Scalper1 News