Moody’s assigns A2 to Disney bond

Moody's Investors Service said it assigned an A2 rating to Walt Disney Co.’s new bond offering.

The new issuance will be of benchmark size and will include five tranches of three-, five-, 10 and 30-year maturities. The three-year notes will have both a floating- and a fixed-rate tranche.

The new notes and debentures are expected to be pari passu with the company's existing senior unsecured indebtedness.

Proceeds will be used for general corporate purposes.

The agency anticipates that pro forma leverage (including Moody's adjustments) for the new debt issuance will be below 2 times Moody's adjusted leverage; therefore, the new bond issuance will not impact the company's A2 senior unsecured long term debt or the Prime-1 short-term debt rating.

Further, Moody’s expects that Disney will continue to maintain credit metrics consistent with its current debt ratings.

The outlook is stable.

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