S&P rates Walt Disney debt A

Standard & Poor's said it assigned Walt Disney Co.'s proposed benchmark issuance of three-, five-, 10-, and 30-year debt its A issue-level rating.

The agency said it estimates the impact of this issuance on Disney's leverage metrics will be about 0.2x, even assuming the entire amount of debt is incremental.

This would bring the company's fully adjusted debt-to-EBITDA ratio to about 1.9x from 1.6x as of Sept 30, pro forma for the Lucasfilm acquisition. While still within S&P's 2x adjusted leverage threshold for Disney at an A rating, the company currently has limited room for economy-related underperformance, operational missteps, or further large debt-financed acquisitions, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.