Disney Bonds soon to be JUNK !!

[DVCDAVE]

On the Dow Jones Wire Services today;

Both Moody's and Fitch are reviewing Walt Disney Co. Bonds for a possible downgrade. Current credit rating is A- by Fitch, and A3 by Moody's.

Good job Ei$ner.........not!

 

[Bstanley]

Now DVCDAVE, if I've told you once, I've told you a MILLION times, don't exaggerate...

 

[DVCDAVE]

NOT an exxageration !

Here is the text of the Moody's article on the Dow Jones newswire service;


:22pm 08/05/02
Disney on review for possible downgrade by Moody's (DIS) By Julie Rannazzisi
Walt Disney (DIS) tumbled 8.5 percent and led the Dow on the downside after Moody's Investors Service placed the entertainment company's long-term rating on review for possible downgrade due to "ongoing concerns about the outlook for the company's theme park operations, uncertainty about viewer and advertiser share momentum at its ABC networks, and the company's high debt burden versus operating and free cash flow." The rating agency feels that the external environment -- including waning consumer confidence and ongoing geopolitical uncertainty -- will continue to challenge Disney. Further, Moody's said that because of ABC's lagging audience share, it may experience greater negative volatility should a "double dip" advertising recession take hold. On Friday, Disney shares tumbled 9 percent after issuing a cautious outlook when releasing its quarterly results. S&P followed by placing its credit rating on Disney on "CreditWatch with negative implications."

 

[Luv2Roam]

Well. take any bets on whose days are numbered now?

 

[manning]

Actually three. Standard and Poor is doing the same.

 

[DVCDAVE]

Right MANNING, I didn't see that last sentance in that article until a second ago, mentioning S&P too.

This Moody's article came out late last night, as we see it also mentions S&P. There is a article mentioning Fitch earlier today.

I'd love to hold the door open as Ei$ner leaves the building for the last time, so I can slam it on his..@ss.


BY the way, this is the SECOND downgrade in less than 12 months. Talk about stepping off a cliff.......

 

[Bstanley]

Moody's lists Disney's present Long Term Bond Rating an 'A3'. To be considered 'Junk' the rating would have to drop to a 'Ba1' which is 4 steps lower than an A3.

The Moody's announcement said that Disney's short-term rating was a 'P-2' which indicates "any long-term rating cut would not exceed two notches".

So it is unlikely that Disney's Bond rating will slip into Junk Status any time soon.