Fitch might lower Disney

Fitch Ratings said it placed the A long-term issuer default ratings and senior unsecured issue ratings of Walt Disney Co. and its subsidiaries on rating watch negative.

The company's F1 short-term issuer default rating and commercial paper ratings were also placed on rating watch negative.

The agency said the rating watch negative reflects the material increase of leverage precipitated by the introduction of cash consideration into Disney's revised offer to acquire some assets from Twenty-First Century Fox, Inc.

Additionally, the rating watch incorporates a degree of uncertainty related to the final terms of the transaction due to the potential for a competing offer from Comcast Corp., Fitch said.

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