Fitch rates Disney loan A

Fitch Ratings said it assigned an A rating to the Walt Disney Co.'s new $1.5 billion 364-day credit agreement.

The outlook is stable.

The company has an issuer default rating of A, senior unsecured debt rating of A, short-term issuer default rating of F1 and commercial-paper rating of F1.

ABC Inc. has an issuer default rating of A and senior unsecured debt rating of A; Disney Enterprises, Inc. has an issuer default rating of A and senior unsecured debt rating of A.

The new credit facility will support the company's expanded commercial-paper program and other general corporate purposes.

The new revolver will expire March 14, 2014, has an option to extend the maturity date one year and will rank pari passi with all existing debt, Fitch said.

The terms and conditions of the new facility are substantially similar to those contained in the company's existing revolving credit facilities, including the maintenance of an interest coverage ratio greater than 3x, the agency said.

The ratings reflect Disney's ample financial flexibility, underpinned by strong free cash flow generation and total leverage of about 1.5x, Fitch said.

The ratings incorporate expectations that the company's share repurchases and mergers and acquisitions activity will likely exceed free cash flow generation given strong liquidity and current credit profile, the agency said.

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