Disney’s credit rating was downgraded over uncertainty of the reopening of theme parks during COVID-19.
S&P Global Ratings downgraded the company Thursday from an A to an A-minus over concerns the parks will recover slower than the rest of the economy, according to a report published by The Hollywood Reporter.
Disney Credit Rating Downgraded Over Theme Park Uncertainty Amid COVID-19
“We believe that Disney’s theme parks could recover more slowly than the overall global economy,” S&P Global Ratings said.https://t.co/qWPT8Lp78b
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“Continued government-imposed social distancing and, longer term, consumer concerns about attending public events will likely retard theme park attendance,” the credit agency said.
“We believe that Disney’s theme parks could recover more slowly than the overall global economy,” the credit rating agency added.
The Disneyland Resort and the Walt Disney World Resort remain closed indefinitely amid the public health crisis after originally closing down on March 14. (RELATED: ‘What The Actual F**k’: Abigail Disney Speaks Out On Disney Furloughs)
“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,” S&P Global Ratings said.
The downgrade comes after a Disney co-founder’s granddaughter slammed the company over furloughing lower level employees after ensuring executives got paid bonuses.
“WHAT THE ACTUAL F***?????” Disney tweeted. “Look, dividends aren’t ALL bad, given the number of fixed income folks who rely on them. But still 80% of shares are owned by the wealthiest 10%. So that excuse only goes so far. But the REAL outrage is, of course, those bonuses…”