Moody's revises Walt Disney outlook to positive
NEW YORK, March 8 (Reuters) - Moody's Investors Service on Tuesday revised the outlook on Walt Disney Co.'s long-term debt ratings to positive from stable, citing strong performance at most major units and debt reduction.
The revised outlook applied to Disney's "Baa1" senior unsecured debt rating, which is three steps above junk, among others, Moody's said. The ratings agency also affirmed that rating.
Disney is likely to continue paying down debt with available cash, and limit share repurchases to that needed to offset dilution from options being exercised, Moody's said.
Disney is also likely to limit its acquisition activity to smaller deals that represent less integration risk, Moody's said.
The action by Moody's affects approximately $11 billion of debt.
A positive outlook implies a potential rating upgrade in 12 to 18 months. Higher debt ratings tend to lower a company's borrowing costs.
The outlook on Disney's "Prime-2" commercial paper rating remains stable, Moody's said.
03/08/05 20:59 ET
NEW YORK, March 8 (Reuters) - Moody's Investors Service on Tuesday revised the outlook on Walt Disney Co.'s long-term debt ratings to positive from stable, citing strong performance at most major units and debt reduction.
The revised outlook applied to Disney's "Baa1" senior unsecured debt rating, which is three steps above junk, among others, Moody's said. The ratings agency also affirmed that rating.
Disney is likely to continue paying down debt with available cash, and limit share repurchases to that needed to offset dilution from options being exercised, Moody's said.
Disney is also likely to limit its acquisition activity to smaller deals that represent less integration risk, Moody's said.
The action by Moody's affects approximately $11 billion of debt.
A positive outlook implies a potential rating upgrade in 12 to 18 months. Higher debt ratings tend to lower a company's borrowing costs.
The outlook on Disney's "Prime-2" commercial paper rating remains stable, Moody's said.
03/08/05 20:59 ET