Disney is now warning that the coronavirus has now made it a challenge to predict future performance of the the company.

The company had this statement in a filing with the Securities and Exchange Commission (SEC) Thursday, March 19th.

“We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts. In addition there has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content.”

Disney had shut down it’s theme parks across the globe, and has postponed the release of several movies in the coming months. As well as halted production on other films and originals for Disney+. ESPN can’t work effectively as most sporting events have also shut down.

So far the only two films, haven’t been postponed and those are Artemis Fowl scheduled for May 29th and Soul scheduled for June 19th. Those could still be halted if the virus shut-downs go longer.

This news comes in conjunction with the news that the Fitch Ratings has put The Walt Disney Company on “credit watch, with a negative outlook, over concerns about how the Hollywood studio will weather the coronavirus outbreak in the near term.”

According to THR, Fitch Ratings dropped Disney’s “ratings outlook” from  “stable” to “negative.” Stating that:

“the coronavirus pandemic will materially weaken Disney’s operating and credit profile over the near term (next two to three quarters).”

The good news is that they do not expect the short term issues to cause the outlook to remain “negative” long term:

Disney will “normalize gradually in step with the return of economic activity as the coronavirus threat diminishes. Fitch does not expect at this time that the short-term shock to Disney’s business model will erode Disney’s long-term credit quality reflected by the current ‘A’ IDR.”

There is a lot more information available in THR article. You can find that HERE.

We will keep any eye on how Disney is doing with the financial ends of the pandemic. But I do believe they will pull through, but I think it will take years to build back up to what they were.

What do you think? Comment and let us know.

Sources: CNBC, The Hollywood Reporter,