Notice how the Miami Herald reports this as DISNEY debt: Credit agency wary of impact that bill dissolving Reedy Creek could have on Disney’s debt.
https://www.miamiherald.com/news/politics-government/state-p…
If this DeSantis bill stands then the cost of issuing any future debt for Disney would be higher with regards to having a lower credit rating.
OTFoolish
Notice how the Miami Herald reports this as DISNEY debt: Credit agency wary of impact that bill dissolving Reedy Creek could have on Disney’s debt.
Because the headline is wrong - which often happens, since the headline writers are not always the people who write the article.
In the body of the article, it makes clear that Fitch is talking about the district’s debt, and not Disney’s. For example:
The legislative action prompted credit-rating agency Fitch Ratings on Friday to place a “rating watch negative” on about $1 billion in outstanding district debt. The district has about $79 million in outstanding utilities revenue and refunding bonds and approximately $766 million in outstanding ad valorem tax bonds, according to an alert issued by Fitch. The district’s various debt ratings range from A to AA-, Fitch said.
Again, note the repeated reference by Fitch to the district’s debt - not the bonds issued by Disney.
Albaby
Walt,
If this DeSantis bill stands then the cost of issuing any future debt for Disney would be higher with regards to having a lower credit rating.
It’s very unlikely to have much impact on Disney (NYSE: DIS). Disney’s credit rating depends solely upon Disney’s ability to repay its bonds – that is, Disney’s profitability. Reedy Creek and Disney are completely separate legal entities, so dissolution of Reedy Creek won’t affect Disney’s future profits.
Norm.