NEWS: Disney Credit Rating Downgraded, While Stock Sees a Slight Rise

Due to the global health crisis’ effect on all sectors of the Walt Disney Company’s business, the company has seen a tumultuous few weeks with their stock.

Today, The Walt Disney Company saw another new development in terms of their stock and credit.

According to Nasdaq, S&P Global downgraded Disney’s credit rating, from a previous A to A-minus. The company was also kept on CreditWatch Negative, which implies that the credit could be cut again in the near future.

In a statement from S&P, they said, “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.” They continued by saying that current government regulations in response to the health crisis will likely impact theme park attendance.

Along with Disney’s theme parks, Disney’s film production has also suffered, with several movies planned for spring and summer theater releases getting pushed back until late 2020.

Mulan’s theatrical release has been significantly delayed. ©Disney

Today, Bank of America also took Disney off of its recommendation list for the United States, though the bank “still holds a Buy rating for the stock.”While the company’s credit has been downgraded, Disney stock still rose 0.5%, “to a recent $101.46.”

We will continue to update as this story develops.