TEXT-S&P rates Walt Disney Co proposed benchmark issuance 'A'

Tue Nov 27, 2012 2:27pm EST

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Nov 27 - Standard & Poor's Ratings Services said today that it assigned
Burbank, Calif.-based entertainment conglomerate The Walt Disney Co.'s 
proposed benchmark issuance of three-, five-, 10-, and 30-year debt its 'A'
issue-level rating. The company will use the proceeds of the issuance for
general corporate purposes, which could include the repayment of near-term debt
maturities including commercial paper or to be able to finance the purchase of
Lucasfilm. We estimate the impact of this issuance on Disney's leverage metrics
will be about 0.2x, even assuming the entire amount of debt is incremental. This
would bring the company's fully adjusted debt-to-EBITDA ratio to about 1.9x from
1.6x as of Sept 30, 2012, pro forma for the Lucasfilm acquisition. While still
within our 2x adjusted leverage threshold for Disney at an 'A' rating, the
company currently has limited room for economy-related underperformance,
operational missteps, or further large debt-financed acquisitions.

Standard & Poor's Ratings Services' A/Stable/A-1 corporate credit rating on 
Walt Disney Co. incorporates Disney's leading, wide-ranging creative 
franchises and distribution capability, underpinning our assessment of its 
business risk profile as "strong," based on our criteria. Disney's financial 
risk profile is "modest," based on a fully adjusted debt-to-EBITDA ratio of 
less than our 2.0x threshold for the 'A' rating, good cash-flow generating 
ability, exceptional liquidity, and a financial policy balancing conservative 
credit metrics with shareholder-friendly initiatives and acquisitions. The 
stable rating outlook reflects our view that Disney's business performance 
will remain strong, particularly at the cable networks,  that management will 
maintain its current financial policy, and there will no further large 
debt-financed acquisitions.

RELATEED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- Use Of CreditWatch And Outlooks, Sept. 14, 2009
     -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008


Ratings List
The Walt Disney Co.

Corporate credit rating       A/Stable/A-1 

Rating Assigned
 Proposed debt                A


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
FILED UNDER:
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