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singhlion2001 214 posts  |  Last Activity: 5 hours ago Member since: Mar 6, 2001
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  • singhlion2001 singhlion2001 5 hours ago Flag

    Netflix debt burden worries Moody's Investors Service
    2 Comments
    BY PATRICK SEITZ
    01/23/2015 12:15 PM ET

    Netflix's (NASDAQ: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.

    View Enlarged Image
    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 to credit metrics and concerns, which entailed a disciplined approach to expanding operations in new territories with the use of internally generated funds and maintenance of high cash balances in excess of total funded debt," Moody's Senior Vice President Neil Begley said in a statement.
    Based on Netflix's plans to aggressively expand international operations and ramp up original content, the company may need to issue additional debt by 2016, Moody's said.
    Netflix ended 2014 with $1.6 billion in cash and equivalents and long-term debt of $900 million.
    Moody's says Netflix's plan to produce more original content to differentiate its service makes good business sense. But it noted that producing its own shows carries greater risks and uncertainties than licensing content.

    Read More At Investor's Business Daily:

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 24, 2015 9:36 PM Flag

    The Lawyers protect the Bankers. The bankers pay the Lawyers(political contibutitions)...If you realize roughly 50-55% of the U.S. House and Senate are lawyers/trail lawyers then it all makes sense of why we are where we are....and don't forget Obama is/was a Lawyer as is Biden.... The Lawyers and Bankers protect each other and are at the top of the Pyramid scheme... The profession that never gets regulated or talked about is the Law profession....The majority of Lawyers in Politics are corrupt it's that simple....We live in a litigious society where you are encouraged to sue reg

    The Lawyers protect the Bankers. The bankers pay the Lawyers(political contibutitions)...

    You missed the ROOT of the problem...

    And the sheep keep obeying, no matter what.

    I saw those sheep, I see these sheep everywhere I look.

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 23, 2015 5:29 PM Flag

    There is capital punishment for murderers ...there should be capital punishment for these white collar murderers who do more damage to society by destroying the economy.

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 23, 2015 5:28 PM Flag

    Al Gore Carbon Credit Lord

    According to Deborah Cory Barnes, author of The Money and Connections Behind Al Gores Carbon Crusade, Al Gore started Generation Investment Management (GIM) with co founder Hank Paulson. Remember him? Yes, he was the Treasury Secretary. Guess what? Yes, he is also the former CEO of Goldman Sachs. (Didnt Goldman Sachs just get billions in Federal Reserve pledges, bailouts, and or Tarp?)

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 23, 2015 1:09 PM Flag

    Red alert for usa 99% working middle class in usa:
    biggest fraud attorney genral eric holder and his scam gang at sec/finra/fbi making sure the fraud loot in netflix fraud manipaulted trading pit does not egt disrupted
    netflix fraud loot scam gang has blown up all “trust” foundations at four branches of federal government in usa
    obama turned out be real osama along with fraud ag eric holder has fulfilled the mission to bust usa and 99% inhabitants by loot entire wealth of usa 99%
    homes stole and all savings wiped out with biggest mortgage scam in human history and now 99% pensions completely stolen and transferred under fraud rule of obama/eric holder under command of goldman sachs led banskters on pure fraud street casino
    fraud obama/eric holder want $100 billion free loot in netflix fraud manipulated trading pit and #$%$ mary joe white & joe ozag scam gang @sec cheering fraud loot and celebrating with porn acts
    fraud director of fbi bribed and working on their behalf to arrest or kill whistle blowers
    goldman sachs biggest financial terrorist on planet earth has obama/eric holder dancing inside their pockets
    public hanging of criminals @sec/finra along with bankster financial terrorists direly in need to stop usa 99% pensions by 1%
    impeachment of obama/eric holder direly in need to save usa from home grown financial terrorists
    goldman sachs rule usa and conman thug reed hastings is puppet of goldman sachs nexus scam gang and untouchable on fraud street casino by any law enforcement agency in usa
    hey fraud inspector generals @oig@sec.gov & ig@doj, why can you fraudsters can not arrest mary joe white scam gang @sec & eric holder @doj for unleashing proven criminal banksters on fraud street casino inn usa and looted entire pensions of 99% after stealing their homes and wiping savings out with biggest mortgage scam in human history????????????????????????????how many billions bribe is for you two traitor to usa inspector generals @sec and @doj??
    why netflix scam gang ongoing loot can not be stopped by any law enforcement agency in usa?????????????????????????????????????

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 23, 2015 12:45 PM Flag

    hang em high only solution left for USA 99% to survive in USA

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 23, 2015 8:59 AM Flag

    hang em high @#sec/finra

    USA 99% have no other choice

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 11:10 PM Flag

    Related Issuers

    Netflix, Inc.
    Related Research
    [The document is not a part of your current subscription.] Credit Opinion: Netflix, Inc.
    Announcement: Moody's comments on Netflix's planned price increase; outlook remains positive
    [The document is not a part of your current subscription.] Issuer Comment: Netflix's planned price increase will not impact ratings; outlook remains positive
    [The document is not a part of your current subscription.] Special Comment: Comcast, Netflix Strike Milestone Direct Data Deal
    [The document is not a part of your current subscription.] Covenant Quality Assessment: Netflix, Inc. - Pre-Sale Snapshot - $400m _% Senior Notes due 2024
    Rating Action:
    Moody's downgrades Netflix's CFR to B1 from Ba3; changes outlook to stable from positive
    Global Credit Research - 22 Jan 2015
    $900 million of rated debt affected

    New York, January 22, 2015 -- Moody's Investors Service downgraded Netflix, Inc.'s (Netflix) Corporate Family Rating (CFR) to B1 from Ba3, Probability of Default Rating to Ba3-PD from Ba2-PD and senior unsecured debt rating to B1 from Ba3. Moody's also revised the company's rating outlook to stable from positive. The Speculative Grade Liquidity rating remains unchanged at SGL-1.

    Downgrades:

    ..Issuer: Netflix, Inc.

    .... Probability of Default Rating, Downgraded to Ba3-PD from Ba2-PD

    .... Corporate Family Rating (Local Currency), Downgraded to B1 from Ba3

    ....Senior Unsecured Regular Bond/Debenture (Local Currency) Mar 1, 2024, Downgraded to B1,LGD4 from Ba3,LGD4

    ....Senior Unsecured Regular Bond/Debenture (Local Currency) Feb 1, 2021, Downgraded to B1,LGD4 from Ba3,LGD4

    Outlook Actions:

    ..Issuer: Netflix, Inc.

    ....Outlook, Changed To Stable From Positive

    Today's rating action was precipitated by the company's announcement that it plans to increase debt by at least $1 billion to fund accelerated international expansion in new territories and materially increase investment in original owned programming to support long-term growth and increase long-term profitability. The downgrade of the CFR to B1 is not a reflection of our view of the strategic benefits of completing the company's global footprint more quickly or increasing spending on owned original content. It reflects our view that the issuance of incremental debt to fund both the significantly increased negative cash flows for the new territory startup costs and the upfront working capital for the significant shift from licensing to production spending will lead to leverage levels meaningfully above the 4.0x sustained leverage upper threshold for the Ba3 rating during our two year rating horizon. We estimate that on a pro forma basis, an increase of $1 billion of total debt, will increase consolidated debt-to-EBITDA by about two turns to 4.3x from 2.3x (as of 12/31/2014 and incorporating Moody's standard adjustments). "Further, based on the company's public guidance for weaker operating results in 2015 relative to 2014, we believe that the combination of a decline in EBITDA over the near term and an increase in absolute debt levels will further push leverage past the limit appropriate for a Ba rating as that leverage could climb to over 6.0x in 2015," stated Neil Begley a Moody's Senior Vice president.

    We note that the company's risk profile will increase materially given our expectations for persistent and significantly higher negative free cash flows going forward, resulting from significant upfront payments related to original programming. "This is a significant deviation from the company's historical financial policies with regard to credit metrics and concerns, which entailed a disciplined approach to expanding operations in new territories with the use of internally generated funds and maintenance of high cash balances in excess of total funded debt," stated Begley. In light of the company's stated intentions to increase investments in its core business and expand operations rapidly, we believe that Netflix is now pursuing a financial policy that will lead to debt being sustained at higher levels than previously envisaged. Given that Netflix plans to accelerate investments in originals and continue to expand its footprint in new regions, we believe that the need to issue additional debt (beyond $1 billion) by 2016 will remain compelling in light of possible liquidity constraints due to continued negative free cash flows and absence of a revolving credit facility. Pro forma for $1 billion of debt issuance, the company's cash balance (including short-term investments) stood at $2.6 billion as of 12/31/2014, which although currently strong may still not be sufficient to support the company's investment needs beyond 2016 without a further debt raise. Moody's notes that the B1 rating therefore allows for some headroom for further debt issuances, but the final impact on ratings and the financial risk profile would depend on the amount and timing of any additional borrowings, and the company's subscriber and profit performance.

    "We recognizes the strategic importance of producing original programming and owning exclusive content for Netflix to distinguish itself with valuable franchises such as House of Cards and Orange is the New Black," stated Begley. We believe that the company's move to aggressively invest in originals will allow it flexibility to leverage the portfolio it builds over time in multiple markets, across various distribution platforms and grow its subscriber base by attracting viewers with exclusive and premium content. These investments will not only give opportunities to boost long-term growth but also build the company's asset base and increase the value of its library. "Nevertheless, producing original shows carries inherent risks and uncertainties versus licensing proven product with audience appeal," added Begley. However, unlike film studios, television and Internet networks can chose to exhibit a show only for a limited time period and not to fund additional episodes if the show fails to garner impressive results.

    As such, we consider the developments to be in line with Netflix's strategy to augment its content slate with high quality originals with global appeal and strengthen its competitive position to attract and retain customers. Accordingly, we think that these investments could improve Netflix's business profile and earnings over the long-term but the company's ratings are constrained by our concerns that the planned cash outlays involve a certain and increasing degree of risk, which along with higher levels of debt and negative free cash flows, weigh heavily on the company's credit profile. To be sure, while we no longer expect the improvement in financial metrics that supported the prior positive outlook due to the change in managements financial risk profile given the planned increase in debt, we expect that Netflix will continue to demonstrate strong operating performance and exhibit operating characteristics that could be consistent with a higher rating as markets turn profitable, and leverage improves. These include its large scale of operations, solid execution across its business segments, a significant subscriber base and its leading position as an internet SVOD service provider.

    RATINGS RATIONALE

    Netflix's B1 CFR is supported by the company's position as the largest content streaming subscription service in the U.S., with a sizeable subscriber base and a market leading streaming product offering. The rating also reflects the company's high pro forma debt-to-EBITDA of approximately 4.3x (pro forma for $1 billion of incremental debt and incorporating Moody's standard adjustments) and expectations for higher leverage and negative free cash flow generation resulting from significant cash outlays for content costs. The rating also incorporates key business risks, which include business concentration, and risks associated with low barriers to entry and the potential for disintermediation from competitors in the distribution of content. The company's past predisposition for share repurchases (having repurchased almost $1 billion from 2007 to 2011), significant subscriber churn and relatively low EBITDA margins compared to traditional media companies continue to weigh on its credit profile, though we do not anticipate that the company will pay any dividends to shareholders or buy back shares over the intermediate-term.

    Netflix has successfully developed a digital business model and has evolved into the dominant online content streaming company in the US and some international territories from a pure physical DVD rental subscription service, as evidenced by strong double digit top-line growth in total revenues over the last eight quarters. However, Netflix's business continues to be in transition with the next few years being crucial to its developing a profitable streaming business across various international territories that can balance potential saturation in the domestic segment and fully offset the rapidly declining profits from the high margin DVD business. Its B1 CFR reflects the execution risk associated with this transition, especially in the context of a broad range of emerging disruptive competitors with low entry barriers, and the evolving digital content distribution landscape that may hamper the subscriber growth it needs in order to successfully build and sustain a streaming business model, strong enough to withstand competitive pressures, and balance significant investment demands.

    RATING OUTLOOK

    The stable outlook reflects our expectation that Netflix's operating results will improve and the company will de-lever following hitting peak leverage in 2015 through EBITDA and cash flow growth starting in 2017, recognizing that over the short-term, debt to EBITDA will likely exceed levels typical for the B1 rating.

    What could change the rating - Up

    Given the material increase in permanent debt and change in fiscal policies by the company's management, an upgrade is unlikely in the near term. However, ratings could be upgraded if Netflix's mature markets can fund new market launches and increases in content spend such that it can maintain a significant lead on its content offering relative to competitors, while sustaining leverage below 4.0x. A strong commitment from management to a higher rating will be necessary for an upgrade.

    What could change the rating - Down

    Ratings could be downgraded if leverage is sustained above 6.0x for an extended time frame (beyond 2016). The company's rating may face downward pressure if it experiences domestic streaming subscriber growth of under 4 million per year until it reaches above 40 million US subscribers, and is unable to maintain domestic and equally mature markets' margins above 12%. Expectations for deterioration in long-term growth due to competitive pressures or operational setbacks and liquidity constrains could also lead to a downgrade.

    The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

    REGULATORY DISCLOSURES

    For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

    For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

    Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

    Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

    Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

    Neil Begley
    Senior Vice President
    Corporate Finance Group
    Moody's Investors Service, Inc.
    250 Greenwich Street
    New York, NY 10007
    U.S.A.
    JOURNALISTS: 212-553-0376
    SUBSCRIBERS: 212-553-1653

    John C Diaz
    MD - Corporate Finance
    Corporate Finance Group
    JOURNALISTS: 212-553-0376
    SUBSCRIBERS: 212-553-1653

    Releasing Office:
    Moody's Investors Service, Inc.
    250 Greenwich Street
    New York, NY 10007
    U.S.A.
    JOURNALISTS: 212-553-0376
    SUBSCRIBERS: 212-553-1653 Less

    Sentiment: Strong Sell

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    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 10:18 PM Flag

    Related Issuers

    Netflix, Inc.
    Related Research
    [The document is not a part of your current subscription.] Credit Opinion: Netflix, Inc.
    Announcement: Moody's comments on Netflix's planned price increase; outlook remains positive
    [The document is not a part of your current subscription.] Issuer Comment: Netflix's planned price increase will not impact ratings; outlook remains positive
    [The document is not a part of your current subscription.] Special Comment: Comcast, Netflix Strike Milestone Direct Data Deal
    [The document is not a part of your current subscription.] Covenant Quality Assessment: Netflix, Inc. - Pre-Sale Snapshot - $400m _% Senior Notes due 2024
    Rating Action:
    Moody's downgrades Netflix's CFR to B1 from Ba3; changes outlook to stable from positive
    Global Credit Research - 22 Jan 2015
    $900 million of rated debt affected

    New York, January 22, 2015 -- Moody's Investors Service downgraded Netflix, Inc.'s (Netflix) Corporate Family Rating (CFR) to B1 from Ba3, Probability of Default Rating to Ba3-PD from Ba2-PD and senior unsecured debt rating to B1 from Ba3. Moody's also revised the company's rating outlook to stable from positive. The Speculative Grade Liquidity rating remains unchanged at SGL-1.

    Downgrades:

    ..Issuer: Netflix, Inc.

    .... Probability of Default Rating, Downgraded to Ba3-PD from Ba2-PD

    .... Corporate Family Rating (Local Currency), Downgraded to B1 from Ba3

    ....Senior Unsecured Regular Bond/Debenture (Local Currency) Mar 1, 2024, Downgraded to B1,LGD4 from Ba3,LGD4

    ....Senior Unsecured Regular Bond/Debenture (Local Currency) Feb 1, 2021, Downgraded to B1,LGD4 from Ba3,LGD4

    Outlook Actions:

    ..Issuer: Netflix, Inc.

    ....Outlook, Changed To Stable From Positive

    Today's rating action was precipitated by the company's announcement that it plans to increase debt by at least $1 billion to fund accelerated international expansion in new territories and materially increase investment in original owned programming to support long-term growth and increase long-term profitability. The downgrade of the CFR to B1 is not a reflection of our view of the strategic benefits of completing the company's global footprint more quickly or increasing spending on owned original content. It reflects our view that the issuance of incremental debt to fund both the significantly increased negative cash flows for the new territory startup costs and the upfront working capital for the significant shift from licensing to production spending will lead to leverage levels meaningfully above the 4.0x sustained leverage upper threshold for the Ba3 rating during our two year rating horizon. We estimate that on a pro forma basis, an increase of $1 billion of total debt, will increase consolidated debt-to-EBITDA by about two turns to 4.3x from 2.3x (as of 12/31/2014 and incorporating Moody's standard adjustments). "Further, based on the company's public guidance for weaker operating results in 2015 relative to 2014, we believe that the combination of a decline in EBITDA over the near term and an increase in absolute debt levels will further push leverage past the limit appropriate for a Ba rating as that leverage could climb to over 6.0x in 2015," stated Neil Begley a Moody's Senior Vice president.

    We note that the company's risk profile will increase materially given our expectations for persistent and significantly higher negative free cash flows going forward, resulting from significant upfront payments related to original programming. "This is a significant deviation from the company's historical financial policies with regard to credit metrics and concerns, which entailed a disciplined approach to expanding operations in new territories with the use of internally generated funds and maintenance of high cash balances in excess of total funded debt," stated Begley. In light of the company's stated intentions to increase investments in its core business and expand operations rapidly, we believe that Netflix is now pursuing a financial policy that will lead to debt being sustained at higher levels than previously envisaged. Given that Netflix plans to accelerate investments in originals and continue to expand its footprint in new regions, we believe that the need to issue additional debt (beyond $1 billion) by 2016 will remain compelling in light of possible liquidity constraints due to continued negative free cash flows and absence of a revolving credit facility. Pro forma for $1 billion of debt issuance, the company's cash balance (including short-term investments) stood at $2.6 billion as of 12/31/2014, which although currently strong may still not be sufficient to support the company's investment needs beyond 2016 without a further debt raise. Moody's notes that the B1 rating therefore allows for some headroom for further debt issuances, but the final impact on ratings and the financial risk profile would depend on the amount and timing of any additional borrowings, and the company's subscriber and profit performance.

    "We recognizes the strategic importance of producing original programming and owning exclusive content for Netflix to distinguish itself with valuable franchises such as House of Cards and Orange is the New Black," stated Begley. We believe that the company's move to aggressively invest in originals will allow it flexibility to leverage the portfolio it builds over time in multiple markets, across various distribution platforms and grow its subscriber base by attracting viewers with exclusive and premium content. These investments will not only give opportunities to boost long-term growth but also build the company's asset base and increase the value of its library. "Nevertheless, producing original shows carries inherent risks and uncertainties versus licensing proven product with audience appeal," added Begley. However, unlike film studios, television and Internet networks can chose to exhibit a show only for a limited time period and not to fund additional episodes if the show fails to garner impressive results.

    As such, we consider the developments to be in line with Netflix's strategy to augment its content slate with high quality originals with global appeal and strengthen its competitive position to attract and retain customers. Accordingly, we think that these investments could improve Netflix's business profile and earnings over the long-term but the company's ratings are constrained by our concerns that the planned cash outlays involve a certain and increasing degree of risk, which along with higher levels of debt and negative free cash flows, weigh heavily on the company's credit profile. To be sure, while we no longer expect the improvement in financial metrics that supported the prior positive outlook due to the change in managements financial risk profile given the planned increase in debt, we expect that Netflix will continue to demonstrate strong operating performance and exhibit operating characteristics that could be consistent with a higher rating as markets turn profitable, and leverage improves. These include its large scale of operations, solid execution across its business segments, a significant subscriber base and its leading position as an internet SVOD service provider.

    RATINGS RATIONALE

    Netflix's B1 CFR is supported by the company's position as the largest content streaming subscription service in the U.S., with a sizeable subscriber base and a market leading streaming product offering. The rating also reflects the company's high pro forma debt-to-EBITDA of approximately 4.3x (pro forma for $1 billion of incremental debt and incorporating Moody's standard adjustments) and expectations for higher leverage and negative free cash flow generation resulting from significant cash outlays for content costs. The rating also incorporates key business risks, which include business concentration, and risks associated with low barriers to entry and the potential for disintermediation from competitors in the distribution of content. The company's past predisposition for share repurchases (having repurchased almost $1 billion from 2007 to 2011), significant subscriber churn and relatively low EBITDA margins compared to traditional media companies continue to weigh on its credit profile, though we do not anticipate that the company will pay any dividends to shareholders or buy back shares over the intermediate-term.

    Netflix has successfully developed a digital business model and has evolved into the dominant online content streaming company in the US and some international territories from a pure physical DVD rental subscription service, as evidenced by strong double digit top-line growth in total revenues over the last eight quarters. However, Netflix's business continues to be in transition with the next few years being crucial to its developing a profitable streaming business across various international territories that can balance potential saturation in the domestic segment and fully offset the rapidly declining profits from the high margin DVD business. Its B1 CFR reflects the execution risk associated with this transition, especially in the context of a broad range of emerging disruptive competitors with low entry barriers, and the evolving digital content distribution landscape that may hamper the subscriber growth it needs in order to successfully build and sustain a streaming business model, strong enough to withstand competitive pressures, and balance significant investment demands.

    RATING OUTLOOK

    The stable outlook reflects our expectation that Netflix's operating results will improve and the company will de-lever following hitting peak leverage in 2015 through EBITDA and cash flow growth starting in 2017, recognizing that over the short-term, debt to EBITDA will likely exceed levels typical for the B1 rating.

    What could change the rating - Up

    Given the material increase in permanent debt and change in fiscal policies by the company's management, an upgrade is unlikely in the near term. However, ratings could be upgraded if Netflix's mature markets can fund new market launches and increases in content spend such that it can maintain a significant lead on its content offering relative to competitors, while sustaining leverage below 4.0x. A strong commitment from management to a higher rating will be necessary for an upgrade.

    What could change the rating - Down

    Ratings could be downgraded if leverage is sustained above 6.0x for an extended time frame (beyond 2016). The company's rating may face downward pressure if it experiences domestic streaming subscriber growth of under 4 million per year until it reaches above 40 million US subscribers, and is unable to maintain domestic and equally mature markets' margins above 12%. Expectations for deterioration in long-term growth due to competitive pressures or operational setbacks and liquidity constrains could also lead to a downgrade.

    The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

    REGULATORY DISCLOSURES

    For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

    For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

    Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

    Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

    Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

    Neil Begley
    Senior Vice President
    Corporate Finance Group
    Moody's Investors Service, Inc.
    250 Greenwich Street
    New York, NY 10007
    U.S.A.
    JOURNALISTS: 212-553-0376
    SUBSCRIBERS: 212-553-1653

    John C Diaz
    MD - Corporate Finance
    Corporate Finance Group
    JOURNALISTS: 212-553-0376
    SUBSCRIBERS: 212-553-1653

    Releasing Office:
    Moody's Investors Service, Inc.
    250 Greenwich Street
    New York, NY 10007
    U.S.A.
    JOURNALISTS: 212-553-0376
    SUBSCRIBERS: 212-553-1653

    Sentiment: Strong Sell

  • WOW
    MOODY'S DOWNGRADE NETFLIX DEBT RATING WHAT ABOUT $9.5 BILLION OFF BALANCE SHEET CONTENT LIABILITIES?HOW MANY BILLIONS NEXUS GANG LOOTED?

    Rating Action:
    Moody's downgrades Netflix's CFR to B1 from Ba3; changes outlook to stable from positive
    Global Credit Research - 22 Jan 2015
    $900 million of rated debt affected

    New York, January 22, 2015 -- Moody's Investors Service downgraded Netflix, Inc.'s (Netflix) Corporate Family Rating (CFR) to B1 from Ba3, Probability of Default Rating to Ba3-PD from Ba2-PD and senior unsecured debt rating to B1 from Ba3. Moody's also revised the company's rating outlook to stable from positive. The Speculative Grade Liquidity rating remains unchanged at SGL-1.

    Downgrades:

    ..Issuer: Netflix, Inc.

    .... Probability of Default Rating, Downgraded to Ba3-PD from Ba2-PD

    .... Corporate Family Rating (Local Currency), Downgraded to B1 from Ba3

    ....Senior Unsecured Regular Bond/Debenture (Local Currency) Mar 1, 2024, Downgraded to B1,LGD4 from Ba3,LGD4

    ....Senior Unsecured Regular Bond/Debenture (Local Currency) Feb 1, 2021, Downgraded to B1,LGD4 from Ba3,LGD4

    Outlook Actions:

    ..Issuer: Netflix, Inc.

    ....Outlook, Changed To Stable From Positive

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 4:59 PM Flag

    Red alert warning : conman thug reed hastings got free 2, 500,000 free pop wipe stock options for 2014 and How much did he loot in 2014?

    Red alert warning : conman thug Reed Hastings got free 2, 500,000 free pop wipe stock options for 2014 and How much did he loot in 2014?
    Why not multiply 2, 500,000 x $400 average and what you get? A fraud loot of one Billion or what?

    what about his free stock option bonanza for 2015?

    and

    How much he will loot in 2015?

    And reminder to all USA inhabitants:

    CONMAN THUG REED HASTINGS/BARY McCarthy/JAY HOG/GOLDMAN SACHS PLANNED THIS PONZI SCHEME BACK IN NOVEMBER OF 2009 AND EXECUTED WITH STREAMING PONZI FRAUD TO SHORT SQUEEZE 39% SHORT INTEREST BY

    USING $200M IN DEBT FUNDS
    ENTIRE LINE OF CREDIT AND ALL CASH FLOW AND FUNDS ON BALANCE SHEET AND LOOTED OVER $10 BILLION AND IN JULY 2011 EARNINGS REPORT NETFLIX WAS OFFICIALLY BANKRUPT

    GOLDMAN SACHS WAS CAUGHT WITH A FRAUD UPGRADE IN JULY 2011 WITH INGRID CHUNG POUNDING THE TABLE $330 TARGET AND GOLDMAN SACHS DUMPED 3.5 Million shares held for manipulation and made a Billion dollar profit and positioned short with planned crash and looted how much in short vis derivatives , we don't know but has to be another billion plus free loot

    I AM ON THE RECORD WARNING FRAUD "SEC' MARY SCHAPIRO & ROBERT KHUZAMI SCAM @SEC BUT CRIMINALS AT 'SEC" HAVE BEEN PART OF NEXUS LOOT SCAM GANG AND THEY COVERED UP THE FRAUD AND TO STOP WHISTLE BLOWER SCREAMS FOR INVESTIGATION AND ACTION, MARY JOE WHITE & ROBERT KHUZAMI GOT ME ARRESTED BY FRAUD DIRECTOR OF FBI AND FRAUD AG ERIC HOLDER

    AND I CAN SCREAM WITH ZILLION% CONVICTION THIS NETFLIX FRAUD LOOT PONZI SCHEME LOOT GANG IS PROTECTED BY OBAMA/.ERCI HOLDER RULING GANG AND WHY?

    MARY JOE WHITE & JO E OZAG ARE RIGHT THAT OBAMA/ERIC HOLDER/DIRECTOR OF FBI HAVE SCAM LOOT PARTNERSHIP WITH GOLDMAN SACHS

    IMPEACH OBAMA/ERIC HOLDER FRAUD RULING GANG ASAP AND ARREST THEM TO SAVE USA & 99% WORKING MIDDLE CLASS FROM HOME GROWN FINANCIAL TERRORISTS

    Sentiment: Strong Sell

  • Red alert warning : conman thug Reed Hastings got free 2, 500,000 free pop wipe stock options for 2014 and How much did he loot in 2014?
    Why not multiply 2, 500,000 x $400 average and what you get? A fraud loot of one Billion or what?

    what about his free stock option bonanza for 2015?

    and

    How much he will loot in 2015?

    And reminder to all USA inhabitants:

    CONMAN THUG REED HASTINGS/BARY McCarthy/JAY HOG/GOLDMAN SACHS PLANNED THIS PONZI SCHEME BACK IN NOVEMBER OF 2009 AND EXECUTED WITH STREAMING PONZI FRAUD TO SHORT SQUEEZE 39% SHORT INTEREST BY

    USING $200M IN DEBT FUNDS
    ENTIRE LINE OF CREDIT AND ALL CASH FLOW AND FUNDS ON BALANCE SHEET AND LOOTED OVER $10 BILLION AND IN JULY 2011 EARNINGS REPORT NETFLIX WAS OFFICIALLY BANKRUPT

    GOLDMAN SACHS WAS CAUGHT WITH A FRAUD UPGRADE IN JULY 2011 WITH INGRID CHUNG POUNDING THE TABLE $330 TARGET AND GOLDMAN SACHS DUMPED 3.5 Million shares held for manipulation and made a Billion dollar profit and positioned short with planned crash and looted how much in short vis derivatives , we don't know but has to be another billion plus free loot

    I AM ON THE RECORD WARNING FRAUD "SEC' MARY SCHAPIRO & ROBERT KHUZAMI SCAM @SEC BUT CRIMINALS AT 'SEC" HAVE BEEN PART OF NEXUS LOOT SCAM GANG AND THEY COVERED UP THE FRAUD AND TO STOP WHISTLE BLOWER SCREAMS FOR INVESTIGATION AND ACTION, MARY JOE WHITE & ROBERT KHUZAMI GOT ME ARRESTED BY FRAUD DIRECTOR OF FBI AND FRAUD AG ERIC HOLDER

    AND I CAN SCREAM WITH ZILLION% CONVICTION THIS NETFLIX FRAUD LOOT PONZI SCHEME LOOT GANG IS PROTECTED BY OBAMA/.ERCI HOLDER RULING GANG AND WHY?

    MARY JOE WHITE & JO E OZAG ARE RIGHT THAT OBAMA/ERIC HOLDER/DIRECTOR OF FBI HAVE SCAM LOOT PARTNERSHIP WITH GOLDMAN SACHS

    IMPEACH OBAMA/ERIC HOLDER FRAUD RULING GANG ASAP AND ARREST THEM TO SAVE USA & 99% WORKING MIDDLE CLASS FROM HOME GROWN FINANCIAL TERRORISTS

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 2:51 PM Flag

    MARY JOE WHITE SCAM GANG @SEC & JOE OZAG SCAM GANG @FINRA ARE LAUGHING THREATENING WHISTLE BLOWERS AND OPENLY SCREAMING: LOOT WILL CONTINUE IN NETFLIX FRAUD TRADING PIT AND WHISTLE BLOWERS WILL BE PROSECUTED OR KILLED

    Hey Fraud Scam Gang at FINRA led by CRIMINAL JOE OZAG, why this crime listed at FINRA cannot be investigated and stopped in Netflix pure Fraud trading pit?
    Enforcement Tips and Complaints
    Manipulation of a security's price or volume
    Insider trading
    Manipulation: Manipulation is intentional conduct designed to deceive investors by controlling or artificially affecting the market for a security. Manipulation can involve a number of techniques to affect the supply of, or demand for, a stock. They include: spreading false or misleading information about a company; improperly limiting the number of publicly-available shares; or rigging quotes, prices or trades to create a false or deceptive picture of the demand for a security. Those who engage in manipulation are subject to various civil and criminal sanctions. Of a security's price or volume
    OPEN LETTER AND CHALLENGE TO DIRECTOR OF FBI/ERIC HOLDER/OBAMA/BANKING COMMITTEE/SEC/FINRA TO DEBATE NETFLIX FRAUD MANIPULATED TRADING PIT WITH FULL FRAUD COVER UP AND PROTECTION PROVIDED BY TRAITOR CRIMINALS AT SEC/FINRA
    AND NOW USING FBI/ERIC HOLDER TO SILENCE WHISTLE BLOWERS
    May 29, 2014
    Director of FBI
    Sir,
    As I have repeatedly challenged all Watch dog agencies, Academia, Banking Committee, President, Attorney General and of course proven criminals at SEC/FINRA to debate NETFLIX Biggest fraud trading pit and massive fraud volume/price manipulation by Netflix insiders Goldman Sachs led bankesters nexus scam gang on USA Wall now turned into pure fraud street Casino to be debated live with Congress in session. Sir FBI has failed to serve USA 99% and is protecting all financial crimes by Wall now fraud street Casino bankster terrorists. $60 Billion plus loot scam and still continues by NETFLIX Nexus scam gang.
    FBI IS HALL OF SHAME IN USA
    Sincerely

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 2:27 PM Flag

    Eric Holder Extremely Corrupt and Biggest High Treason criminal Fraud Attorney General in History of USA ever
    I will always remember Holder as the man "brave" enough to persecute a college-age computer hacker and hound him to death; and "courageous" enough to zealously pursue criminal charges against whistleblowers; and cowardly enough to let perpetrators of massive financial crimes completely off the hook.


    He failed in many areas as AG. He would have helped everyone no matter what their color had he brought charges against those who brought down the economy! We were depending on him to bring charges, prosecute and show them that The People will not tolerate outright gambling and theft of their hard earned money.

    Instead of prosecuting them, he got them to pay big fines but those banksters who paid the fines...went on to earn bigger salaries, bigger bonus' and one of them just whipped the behinds of those in Congress who did his bidding & gut Dodd-Frank.

    More theft and gambling begins as Holder leaves office and leaves some of the same bankers to run the country into the gound again while the Tax Payers Bail them out. This is insane.
    How Eric Holder Turned "Justice" Into a Wall Street Criminal
    Protection Racket

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 2:11 PM Flag

    no the criminal has 2015 free loot stock option Bonanza again and he is pretending and fooling to get away and to protect from future Class action law suits.

    Classic Fraud loot Ponzi scheme and MF conman thug Reed Hastings scam Gang bribed Judges in last Crash and Burn July 2011 fraud loot , Yes You can buy entire USA federal Government with $60 Billion plus loot scam and don't forget that Netflix fraud manipulated trading pit can not be touched by any law enforcement agency in USA and why?

    Because Mary Joe White criminal #$%$ screamed : OBAMA?ERIC HOLDER fraud loot partnership with GOLDMAN SACHS/JAY HOAG/CONMAN THUG REED HASTINGS

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 22, 2015 12:48 PM Flag

    We’ve Let The Clowns Come Way Too Far
    Submitted by Tyler Durden on 01/22/2015 - 11:59
    If speeches like the State of The Union this week, and the reactions to it, make anything clear, it’s that the PR guys won the fight against critical thinking. All you need to do is get people to believe whatever it is you got for sale. And 99.9% of people are easily fooled. That’s how you define democracy in 2015: how many people can you fool? Which is the most convincing sleight of hand?

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 21, 2015 5:31 PM Flag

    CORPORATE FASCISM: The Destruction of America's Middle Class
    A new kind of fascism has taken over America: the merger of corporations and government whereby corporate power dominates. With the emergence of ever-larger multinational corporations -- due to consolidation facilitated by the Federal Reserve's endless FIAT money -- the corporatocracy has been in a position to literally purchase the U.S. Congress.

    watch on YouTube

    Sentiment: Strong Sell

  • singhlion2001 singhlion2001 Jan 21, 2015 5:07 PM Flag

    scamflix will have blockbuster moment in 2016

    Biggest fraud loot ponzi scheme by Conman thug Reed Hastings/Goldman Sachs led nexus scam gang ever

    Sentiment: Strong Sell

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