S&P: Walt Disney still on watch

S&P said its ratings on Walt Disney Co. remain on CreditWatch, where they were placed with negative implications on Dec. 14, 2017.

Disney announced a revised offer for Fox valued at an enterprise value of about $85 billion, which is about $19 billion higher than its previous offer.

Additionally, Disney revised the structure of the offer so that it will pay 50% of the value with equity and 50% with cash, which is a change from the company's previous all equity offer.

The agency said the CreditWatch negative placement reflects the uncertainty regarding the final terms and structure of the Fox acquisition and the potential that regulatory concessions will be required to complete the deal.

“We expect that Disney's adjusted leverage will be in the mid 3x-4x range at the close of the transaction depending on the specific assets it purchases, including whether it acquires a 100% ownership stake in Sky or just the 39% that Fox currently owns,” S&P said in a news release.

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