Disney maintains strong revenue visibility and a stable leverage ratio of approximately 2.5x as of fiscal year-end 2024, but near-term credit improvement faces challenges due to heavy capital expenditures in theme parks and cruise lines, higher shareholder returns, and potential debt financing for the Hulu acquisition, which could cost up to $5 billion. Despite these pressures, the company’s leading market position and ability to leverage intellectual property across multiple platforms continue to support its financial stability and long-term competitive advantage.

Source: Fitch Ratings