S&P changes Netflix to positive

S&P said it revised its outlook on Netflix Inc. to positive from stable and affirmed its B+ corporate credit rating.

The B+ issue-level rating on the company's senior notes and 3 recovery rating are unchanged, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default.

The agency said the outlook revision reflects an expectation that Netflix will continue to demonstrate significant strength as the leading streaming video on demand service despite increasing competition.

“The company's strong EBITDA margin expansion in 2017 demonstrates this strength: it successfully raised prices while achieving accelerated subscriber growth,” S&P said in a news release.

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