Driven by good execution and a 21% sequential increase in international subscribers (paid), the company demonstrated remarkable progress in stabilizing its international segment operations and curtailing international startup losses, which improved by over 50% on a year over year basis. Based on the company's solid Q1 results and expectations for continued growth momentum in the remainder of the year, Moody's anticipates that over the coming quarters, Netflix stands to position itself more solidly in the Ba rating category and move towards credit metrics that are indicative of a higher rating. The positive outlook is supported by our belief that continued operating improvements will enable the company to reduce consolidated debt-to-EBITDA leverage from approximately 3.0x at 3/31/2014 (incorporating Moody's standard adjustments) to under 2.0x within the next 18 months.