S&P: Disney outlook stable

Standard & Poor's said it affirmed Walt Disney Co.'s A long-term and A-1 short-term corporate credit ratings and changed the outlook to stable from negative.

The change reflects expectation that the company will keep its fully adjusted debt-to-EBITDA ratio below the 2 times threshold through continuing EBITDA growth and a conservative financial policy, according to the agency.

"Our corporate credit rating on Disney incorporates the company's leading and wide-ranging creative franchises and distribution capability, conservative financial policy and strong financial fundamentals that enable the company to maintain relative stability of its credit metrics throughout the economic cycle," S&P analyst Deborah Kinzer said in a statement.

"At the same time, some of Disney's business units continue to underperform, and the company faces the structural risks of evolving digital technology and ongoing audience fragmentation."

In the 12 months ended July 3, leverage fell to 1.9x from 2.1x.

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