Moody’s might cut Disney

Moody's Investors Service said it placed Walt Disney Co.’s A2 senior unsecured and Prime-1 commercial paper ratings on review for downgrade following the company's announcement that it increased its offer price for the entertainment assets of 21st Century Fox America, Inc. (Baa1, on review for upgrade), to $38 per share ($71.3 billion) from $28 per share ($52.4 billion), while also revising the offer to 50% cash from the prior 100% equity share consideration.

Moody's said the review will focus on Disney's ability to expeditiously de-lever to its current credit metrics.

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