S&P: Walt Disney unaffected

Standard & Poor's said the A long-term rating and A-1 short-term rating of the Walt Disney Co. are unaffected by the company's plan to refinance its Euro Disney group's outstanding debt and replace it with a new financing.

S&P said it believes Disney is providing this refinancing to create greater operational flexibility for Euro Disney by removing restrictive covenants that prevented capital expenditures.

The new financing will smooth out required amortization and will reduce interest expense, the agency said.

The refinancing has no impact on the ratings on Disney because the agency said it already consolidated the Euro Disney debt into the debt calculation.

The new financing will benefit Disney by carrying a lower interest expense and will therefore modestly improve interest coverage, S&P added.

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