After reopening Shanghai Disney, The Walt Disney Company has added more debt to their growing total. The company has raised nearly $11 billion in a new debt offering as it continues to deal with the impact of the novel coronavirus pandemic on its worldwide businesses.
Moody’s Investors Service on Monday assigned an A2 rating to the Disney debt raise, stating,
“This transaction will add to Disney’s significant liquidity as it will free up revolving debt capacity otherwise assumed set aside to back outstanding commercial paper and near-term maturities, and essentially removes any question that the company has robust liquidity to help carry it through this ‘black swan’ cycle caused by the spread of COVID-19,”
Fitch Ratings in its own note assigned an A- rating to Disney’s multi-tranche offering, with a negative outlook.
“Fitch views the issuance positively as the company bolsters its liquidity position, reduces reliance on commercial paper markets and addresses current maturities,” the credit agency said. “Fitch believes Disney has the financial flexibility and capacity to withstand the impact of the coronavirus pandemic.”
As Disney begins to open their parks and ramp of their film releases once theaters open their doors, the company like many others will look to at ways to begin to profit after the COVID-19 pandemic continues to hurt many businesses.
