Moody's rates Disney bond A2

Moody's Investors Service said it assigned an A2 rating to Walt Disney Co.'s new bond offering.

The new issuance will be of benchmark size and will include three tranches of three-year, five-year and 30-year bonds. The new notes and debentures are expected to be pari passu with the company's existing senior unsecured debt.

The outlook is stable.

Proceeds will be used for general corporate purposes, including the repayment of the company's commercial paper borrowings, which stood at $2.3 billion at March 29.

The agency expects the transaction will be essentially leverage-neutral and will not materially impact Disney's credit metrics.

S&P said Disney's A2 senior unsecured debt ratings and Prime - 1 commercial paper rating reflect its position as the world's largest media conglomerate with a diverse portfolio of powerful brand names and iconic media assets with long operating histories. Disney's large scale and highly diversified revenue streams lead to sizeable annual free cash flow generation and strong credit metrics, the agency said.

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