In business-related news, S&P downgraded the Walt Disney Company’s credit rating on Thursday, April 23, 2020. The credit agency based their decision on the impact of the coronavirus pandemic on on Walt Disney’s theme parks and assets with overhead costs. For instance, putting the production of TV and film projects on hold, and the lack of sports for entertainment.
S&P is keeping the Disney credit ranking on CreditWatch Negative. This ranking means that Disney’s credit rating could possibly downgrade again in the near term.
The S&P credit agency issued the following statement:
”Disney’s theme parks won’t likely return to normal capacity utilization at the same rate as the overall economy even after stay-at-home restrictions are eased and the theme parks are allowed to reopen.”
The coronavirus pandemic is impacting many people’s lives. The continued government-imposed social distancing and stay-at-home orders are factored into the new Disney credit rating. The uncertainty over the reopening of Disney’s theme parks and rate of economic recovery are some of the major concerns. Also, Disney’s shares have fallen 30% in the year to date and and their value was slightly lower premarket.
We will share additional business news on the Walt Disney Company when information becomes available.
Source: Market Watch