Credit ratings agency Moody’s noted that following the company’s investor days investors were concerned about the amount of debt 21st Century Fox had relative to its earnings.
However, Moody’s said the media firm had one of the strongest levels of financial flexibility among its peers to make acquisitions, dividend payments or find share buy backs.
“We expect 21st Century Fox to maintain slightly higher leverage to continue making moderate sized tuck in acquisitions, ramp up its dividend payout as well as fund greater share buybacks over the following year,” Moody’s said.
It added that acquisitions will be largely funded out of 21st Century Fox’s US$6.7 billion warchest and from its strong earnings.
21st Century Fox was incorporated after Rupert Murdoch’s (pictured) News Corp split its entertainment and publishing divisions in two in June. The Fox broadcast network, studio 20th Century Fox and Fox International Channels are among its assets.
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18 June 2018 @ 11:08:55 UTC