Walt Disney Earns A-Plus Grade from S&P
S&P Global Ratings raised its long-term corporate credit rating on Walt Disney ( DIS) to A-plus from A on Thursday. An A-plus is a mid-level rating for an investment grade company. There are three double-A tiers and the top triple-A tier above it.
Analysts at the credit rating agency recent reviewed media company ratings and decided Disney has better long-term prospects than many of its peers, says credit analyst Naveen Sarma.
We believe Disney will continue to successfully tap its deep reservoir of intellectual property to generate high demand content through its film and television studios. This includes its legacy Walt Disney Studios (which owns such iconic brands as
He expects "overall business performance will remain strong, particularly at its film and TV studio division and at the cable networks, despite secular pressures in the U.S." He adds: "We also expect that management will maintain its current financial policy, with adjusted leverage of less than 2x."
Disney's stock has fallen this week. It was at $110.66 at 10 a.m. ET Thursday, down about 1% from Wednesday's close.