Netflix scored a debt ratings upgrade from S&P Global Ratings on Tuesday, with its analysts citing "strong streaming video trends and free cash flow improvement." The S&P said the credit ratings outlook on the streaming giant remains positive, meaning there could be further upgrades down the line from the new "BB+" rating, up from "BB" previously.
A week after Netflix's fourth-quarter and 2020 results, the analysts wrote that the firm, "with help from accelerating secular trends for streaming video services during the pandemic, beat our expectations for subscriber growth, margin improvement, and free cash flow generation." Indeed, Netflix, led by co-CEOs Reed Hastings and Ted Sarandos, said it could roughly break even on free cash flow this.
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