Standard & Poor’s Ratings Services said today that it gave an A rating to Walt Disney Co.’s proposed $500 million global notes due 2019. Disney owns Bristol-based ESPN.
The ratings agency said the rating was assigned due to Disney’s premier creative franchises, extensive media distribution, conservative capital structure and good discretionary cash flow.
Disney’s also has an A, or investment grade, long-term corporate credit rating. Its outlook is negative.
S&P said it was concerned that the family entertainment company’s earnings may continue to suffer into fiscal 2010 partly on lowered consumer confidence, the consumer spending pullback and the stronger dollar.
Last month Disney reported a 32 percent decline in its first-quarter profit due to challenging economic conditions.
At 3 p.m., Disney traded at $17.23, up 64 cents, or 3.9 percent. The stock has traded from $15.14 to $35.02 over the past 52 weeks. (AP)
