EDITION MAIN PAGE | Vacation & Leisure Real Estate
Disney Gets High Marks from S&P on Planned $1B Bond Issue
(NEW YORK, NY) -- At last, some cheery news on the vacation-leisure industry front.
Standard & Poor's Ratings Services today assigned its 'A' rating to the proposed $1.0 billion global notes due 2013 offered by The Walt Disney Co. of Burbank, CA.
S&P credit analyst Deborah Kinzer says the long-term corporate credit rating on Disney is 'A' and the rating outlook is stable.
"The rating reflects Disney's premier creative franchises, extensive media distribution, conservative capital structure, and good discretionary cash flow," says Kinzer.
"We currently believe that the company's management of operating costs and capital spending will help support its discretionary cash flow and credit metrics, despite recessionary pressures on revenue," the analyst says.
The Consumer Products segment "will continue to incur the operating expense of developing Disney-branded video games, and Disney's recent purchase of the Disney Stores in North America will likely pressure segment EBITDA further," she says.
Kinzer adds, "Standard & Poor's recognizes that Disney is not legally responsible for EDL's and HKDL's debt, but we view these units as closely related to Disney because of their strong brand equity links with, management involvement from, and operating ties with Disney."
Standard & Poor's Ratings Services today assigned its 'A' rating to the proposed $1.0 billion global notes due 2013 offered by The Walt Disney Co. of Burbank, CA.
S&P credit analyst Deborah Kinzer says the long-term corporate credit rating on Disney is 'A' and the rating outlook is stable. "The rating reflects Disney's premier creative franchises, extensive media distribution, conservative capital structure, and good discretionary cash flow," says Kinzer.
"We currently believe that the company's management of operating costs and capital spending will help support its discretionary cash flow and credit metrics, despite recessionary pressures on revenue," the analyst says.
The Consumer Products segment "will continue to incur the operating expense of developing Disney-branded video games, and Disney's recent purchase of the Disney Stores in North America will likely pressure segment EBITDA further," she says.
Kinzer adds, "Standard & Poor's recognizes that Disney is not legally responsible for EDL's and HKDL's debt, but we view these units as closely related to Disney because of their strong brand equity links with, management involvement from, and operating ties with Disney."
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