Giant ratings agency Moody’s Tuesday outlined the massive financial hit Disney is taking in the current coronavirus pandemic but said the company has enough cash to weather the disruption. &#…
). The company’s film slate was heavily weighted toward its fiscal first quarter that ended in December, Moody’s noted.will take a hit from the suspension and postponement of the NBA and MLB seasons, as well as other live sports programming disruptions. Luckily, the company’s film slate was heavily weighted toward its fiscal first quarter that ended in December. Studio entertainment generates 17% of revenue.
Moody’s also said investment in Disney+ and streaming has already eaten into free cash flow. Depending on how long coronavirus-related disruptions last, it is possible Disney will not generate free cash flow in fiscal 2020, delaying its deleveraging plan. Moody’s said the crisis will add between six months and a year to the time the company will need to return its balance sheet to credit metrics consistent with its current A2 long-term debt ratings.
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