Fitch rates Disney notes A

Fitch Ratings said it assigned an A rating to the Walt Disney Co.'s proposed offering of benchmark five- and 10-year senior unsecured notes.

The outlook is stable.

The notes will be issued under Disney's existing indenture and will be pari passu with all existing debt, Fitch said.

The proceeds will be used for general corporate purposes, including to term-out a portion of its current commercial-paper outstanding, the agency said.

The ratings reflect Disney's ample financial flexibility, underpinned by strong free cash flow generation, total leverage of about 1.4 x and net leverage below 1.0 x, Fitch said.

The ratings also consider Disney's consistent ability to consistently leverage and monetize its brands and characters across all aspects of its business, which benefits the company's operating profile and free cash flow generation, the agency said.

Concerns center on the cyclicality of the company's businesses, particularly its parks and resorts and broadcasting, Fitch added.

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