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Moody's raises Netflix outlook to 'positive'

NEW YORK (AP) -- Moody's Investors Service raised its outlook on Netflix's credit Friday following the Internet video service provider's strong fourth-quarter results earlier this month.

Moody's raised the rating outlook to "positive" from "stable." It has a "Ba3" rating on Netflix's credit. That rating is in the "junk" category, three notches below investment grade. The ratings apply to about $500 million in debt.

The firm noted Netflix's strong operating performance over the last year. It cited expectations for steady subscriber growth and improved credit metrics.

On Jan. 22, Netflix said its fourth-quarter net income climbed as it added another 2.3 million subscribers in the U.S.

Shares in Netflix Inc., which is based in Los Gatos, Calif., picked up $6.34 to $411.01 in afternoon trading. They have more than doubled in value over the last year.