S&P; Cuts Blockbuster, Movie Gallery Ratings
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Video rental chains Blockbuster Inc. and Movie Gallery Inc. had their credit ratings cut one level by Standard & Poor’s Ratings Services.
The corporate credit ratings were reduced to B-minus from B and the subordinated note ratings to CCC from CCC-plus for both companies, S&P; said.
The ratings reductions came after Blockbuster this week reported a third-quarter loss of $491.4 million and Movie Gallery posted a loss of $12.5 million.
Blockbuster also said it might be forced to file for bankruptcy protection, and Movie Gallery warned that its fourth-quarter results would be hurt by “lackluster” movie releases in the second and third quarters.
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