Standard & Poor's upgrades Blockbuster

New York City Standard & Poor's Ratings Services has raised its corporate credit rating on Blockbuster to "B-" from "CCC."

Both ratings are non-investment grade, also known as "junk." The outlook is stable, S&P said.

The ratings agency also assigned a "B" rating to the company's $675 million senior secured notes.

Blockbuster said earlier this week it may close as many as 960 stores by the end of next year, which would leave it with about 20% fewer U.S. stores.

S&P said it believes that Blockbuster's long-term success is "highly dependent on its ability to adapt to a market that is increasingly subject to changes in technology and is less dependent on in-store rentals."