Backed by the support of a foundation created by the family of Walt Disney, the Walt Disney Family Museum LLC plans to sell bonds next month to finance a San Francisco museum that will be dedicated to his life.
All three rating agencies weighed in on the transaction this week. Fitch Ratings assigned a AA-minus to the $59 million deal, Standard & Poor’s rated it A-plus, and Moody’s Investors Service gave it an A1.
All three agencies cited the pledged support of the Walt and Lilly Disney Foundation for the rating.
“The strength of the rating is based on the history of annual support and guaranteed pledge of debt payment by the Walt and Lilly Disney Foundation,” Standard & Poor’s credit analyst Jessica Matsumori said in a statement. “In addition, the museum poses little construction risk at this time, as the majority of its expenses have already been contracted and secured.”
The foundation has a “large financial resource base of over $262 million,” according to Moody’s.
JPMorgan is the underwriter for the deal, which will use the California Infrastructure and Economic Development Bank as conduit issuer.
The museum will be constructed in San Francisco’s Presidio, a former military post near the Golden Gate that has become a national park.
The foundation was established in 1974 as a private foundation by members of the Disney family. It is not affiliated with the Disney Corp.
The $113 million museum project is being constructed in a former barracks building. No further debt is expected.