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Moody's upgrades Netflix and says it expects 2018 to be 'negative cash flow trough'

Moody's Investors Service upgraded Netflix Inc.' debt rating by way of one notch on Wednesday, elevating it to Ba3 from B1, but conserving it three notches into speculative-grade, or "junk," status. The transfer is due "to our expectations for continuing strong momentum of global subscriber and revenue growth for the intermediate-term, and our expectation that 2018 will be the negative cash flow trough for the company," the company said in a commentary. The corporate's credit score metrics are anticipated to stay susceptible through 2019, but metrics such as the debt-to-EBITDA leverage, is expected to support and grow to be extra in step with the rating by way of 2020. Netflix stocks had been up three% in afternoon trade, and have received 112% within the last 12 months, while the S&P 500 SPX, -Zero.53% has received 13%.