Ratings agency S&P Global has upgraded Netflix’s credit rating citing increased subscriber growth and higher consumer usage during the pandemic.
Netflix’s rating has changed from from BB- to BB with a stable outlook.
S&P Global said it anticipates the streamer will have positive free operating cash flow this year due to delays in production expenditures amid location shooting shutdowns, and eventual lower debt loads and profitability.
“The stable outlook reflects our expectation that Netflix will continue its solid global operating performance,” said S&P.
The agency added that it expects Netflix to add 35 million net subscribers in 2020, marking the first time it will exceed 30 million subscribers in a fiscal year.
“While we don’t expect the same level of operating improvement in 2021 as subscriber growth slows and content investments ramp back up, the company’s financial metrics will be materially better than we had previously forecast,” added S&P Global.
Netflix recently announced it had added another 10 million global subscribers during Q2 2020, taking its global total to 192.95 million.