From the Orlando Business Journal
Fitch Assigns Disney Global Notes ‘A-‘ Rating
(Orlando Business Journal) -- Fitch Ratings is giving an "A-" rating to a 12-year, $450 million global notes offering by Walt Disney Co. The new issue is a senior unsecured obligation of Disney and receives the same "A-" ranking as the company's other senior unsecured obligations, Fitch says. Disney plans to use proceeds from the offering for general corporate purposes, which include refinancing maturing debt. In November 2001, Fitch gave Disney's senior unsecured rating a "negative" outlook due to the company's weakened earnings forecast and below-average credit protection measures at the "A-" rating level. A decline in vacation travel to Disney's parks and resorts operations, as well as the poor performance of its ABC network, caused Disney to ratchet down earnings. However, Fitch says Disney is doing several things to boost its credit profile by cutting cash outlays in the short term, getting rid of certain assets and investments, furthering cost reduction efforts and using expected earning and cash flow in 2003 to reduce debt.
Fitch Assigns Disney Global Notes ‘A-‘ Rating
(Orlando Business Journal) -- Fitch Ratings is giving an "A-" rating to a 12-year, $450 million global notes offering by Walt Disney Co. The new issue is a senior unsecured obligation of Disney and receives the same "A-" ranking as the company's other senior unsecured obligations, Fitch says. Disney plans to use proceeds from the offering for general corporate purposes, which include refinancing maturing debt. In November 2001, Fitch gave Disney's senior unsecured rating a "negative" outlook due to the company's weakened earnings forecast and below-average credit protection measures at the "A-" rating level. A decline in vacation travel to Disney's parks and resorts operations, as well as the poor performance of its ABC network, caused Disney to ratchet down earnings. However, Fitch says Disney is doing several things to boost its credit profile by cutting cash outlays in the short term, getting rid of certain assets and investments, furthering cost reduction efforts and using expected earning and cash flow in 2003 to reduce debt.