Moody's rates New Disney notes A2

Moody's Investors Service said it assigned an A2 senior unsecured rating to TWDC Holdco 613 Corp.'s (New Disney), newly issued notes which are being exchanged for notes of 21st Century Fox America, Inc.

New Disney is the new holding company of legacy the Walt Disney Co. and will complete its acquisition of 21st Century on March 20, Moody's said.

New Disney's new notes are being exchanged for most of 21st Century's outstanding bonds, which will come to consolidated New Disney as part of the acquisition, the agency said.

The new note issuance was initiated by a voluntary obligor exchange between New Disney and existing 21st Century bondholders, Moody's said.

The ratings reflect the company's position as the world's largest media conglomerate with a diverse portfolio of powerful brand names and iconic media assets with long operating histories, the agency said.

Disney's large scale and highly diversified revenue streams lead to sizable annual free cash flow generation and strong credit metrics, Moody's said.

The rating also captures the company's exposure to cyclical consumer spending pressures and volatility of its film businesses, the agency said.

These risks are somewhat tempered by Disney's vast geographic and product diversity that are supported by its track record of investing in strategic initiatives across multiple platforms, while profitably growing its established assets, Moody's said.

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