Netflix stock slumps on S&P downgrade

Shares in Netflix (Nasdaq: NFLX) dropped nearly 5 percent Tuesday after Standard & Poors downgraded its debt rating on the company to a speculative investment category it assigns to companies facing "major ongoing uncertainties."

S&P downgraded its rating on Netflix debt to "BB-" from "BB." The news saw Netflix stock drop to $66.82 by 12:30 p.m. ET, down $3.13, or 4.48 percent.

The downgrade is the latest in a string of setbacks for Netflix, which lost 800,000 subscribers in the third quarter. The top online video provider could find it difficult to pay for contracts with TV programmers and studios if it continues to lose subscribers.

For more:
- Bloomberg has this story

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