NEW YORK (
credit rating outlook was cut by Standard & Poor's on Thursday to negative from stable.
This comes after Netflix reported disappointing U.S. subscriber rate in the third-quarter and issued a disappointing outlook for the remainder of the year and 2012.
Netflix ended the quarter with 23.8 million domestic users, below its revised forecast of 24 million U.S. subscribers. And subscriber attrition isn't expected to wane, with Netflix foreseeing domestic subscribers between 20 million and 21.5 million in the fourth quarter.
Netflix's profitability in the fourth quarter remains anyone's guess, with management predicting a wide earnings range of 36 to 70 cents a share.
On top of this, Netflix has also indicated it expects to operate at a loss starting in the first quarter of 2012 and doesn't expect to return to profitability for a few quarters because of costs associated with expanding into the U.K. and Ireland.
Netflix shares were recently trading up 1.2% at $80.40.
Reported by Jeanine Poggi in New York.
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