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credit rating was lowered by Standard & Poor's late Monday on expectations that the company will report a loss in 2012.

The ratings agency cut its assessment of Netflix's credit to 'BB-' from 'BB' and kept its outlook at stable.

"Our expectation

is that escalating content commitments will lower profitability over the intermediate term, international expansion will have a greater impact on overall profitability, and a return of domestic subscriber growth could occur slightly later than we initially expected," S&P credit analyst Andy Liu said in a statement.

Shares of Netflix rose in Monday's regular session following an upgrade by Susquehanna to neutral from negative. The firm said it believes the stock will recover if U.S. subscriber additions increase more quickly than anticipated and argued the depressed share price removes some downside risk for investors. The stock is down more than 60% so far in 2011 following a negative customer response to a price increase.

The closed up nearly 10% to $69.95 on Monday, but dropped off slightly in after-hours trading.


Reported by Jeanine Poggi in New York.

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