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News Watch
Disney's Marvel Acquisition May Have Ripple Effects, S&P Warns Of Possible Downgrade (DIS, MVL) - 8/31/2009 3:26:54 PM

8/31/2009-In reaction to Disney's (NYSE:DIS) announcement of a potential Marvel Entertainment (NYSE:MVL) acquisition that may cost it $4 billion, Standard & Poor's rating service said it may downgrade its rating on the company. S&P currently holds an A long-term corporate credit rating and A-1 short-term rating on Disney, however, the firm said "We are concerned that Disney's potential issuance of debt, its plan to buy back the stock portion within one year, the high purchase price, and the potential for continuing EBITDA declines in Disney's businesses if the recession is prolonged will lead to debt leverage remaining above our threshold for an extended period."


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