Fitch gives Disney notes A

Fitch Ratings said it assigned an A rating to Walt Disney Co.'s multi-tranche offering of benchmarked-sized fixed- and floating-rate senior notes.

Proceeds from the offering are expected to be used to repay amounts outstanding under the company's 364-day credit agreement dated March 15, 2019, to pay the cash consideration related to a cash tender offer launched concurrently with the offering, and for general corporate purposes.

The notes will rank pari passu with Disney's other unsecured indebtedness and will be guaranteed on a senior unsecured basis by Disney's wholly owned subsidiary TWDC Enterprises 18 Corp.

Fitch said it continues to expect that Disney will prioritize debt reduction and forego share repurchases until leverage is reduced to a level consistent with its A long-term issuer default rating and reflects the company's historically conservatively managed balance sheet.

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