Netflix Leads Credit Rising Stars as Recovery Winners Emerge

After spending more than a decade trying to convince credit investors that its fortunes could be sustained, Netflix Inc. is eyeing promotion to investment-grade status.

It’s not the only one. A growing number U.S. firms may also become so-called “rising stars” as economic recovery sorts Covid-19 winners from losers.

S&P Global Ratings upgraded online streaming giant Netflix two notches to BBB this week. It spent years burning debt-funded cash to produce new content and expand, but Netflix margins and cash flow now warrant a blue chip rating, according to S&P. If Moody’s Investors Service follows suit, lifting Netflix from ...