NEW YORK (AP) – Moody's Investors Service said Wednesday it upgraded Walt Disney Co.'s ratings on the media and entertainment company's improved credit metrics and balance sheet.
- The ratings service raised Disney's senior unsecured ratings to "A2" from "A3," its commercial paper ratings to "Prime-1" from "Prime-2," and its preferred stock shelf ratings to "A3" from "Baa1."
- Moody's also assigned the Burbank, Calif.-based company's $4.5 billion bank facilities "A2" senior unsecured ratings.
- Obligations rated "A2" and "A3" are considered upper-medium grade and subject to low credit risk.
- The outlook is currently stable, meaning the ratings are unlikely to change. Moody's initiated its review of Disney's ratings on Jan. 18. The ratings service said about $13.8 billion of debt securities are affected by the upgrade.
Moody's attributed the upgrade to its view that Disney can sustain its strengthened results and credit metrics, as well as management's commitment to maintain the company's strong balance sheet and metrics over the longer term. Moody's analyst Neil Begley cited successful Disney franchises, such as the "Pirates of the Caribbean" movie trilogy, as contributing to the company's recent improvement.
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