S&P: Disney outlook negative

Standard & Poor's said it revised the outlook on Walt Disney Co. to negative from stable and affirmed its A corporate credit rating.

"The outlook change reflects our expectation that the company faces further quarters of declining revenue and EBITDA, along with climbing leverage," S&P analyst Deborah Kinzer said in a statement.

Lease- and pension-adjusted gross debt-to-EBITDA ratio rose to 2.1x from 1.8x as of Sept. 30.

The A rating reflects Disney's premier creative franchises, extensive media distribution, conservative capital structure and good discretionary cash flow, S&P said.

Keen competition from larger, well-capitalized rivals, mature growth prospects of its principal businesses and the risks that evolving digital technology and ongoing audience fragmentation pose temper the company's strengths, the agency noted.

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