Comcast Corp.

Even after including roughly $10 billion per year over the next few years toward shareholder-friendly actions (about $5 billion in dividends and $5 billion in share repurchases) and $14 billion in annual capital expenditures and assuming $1 billion in tuck-in M&A, we expect Comcast could deleverage below its 2.5x leverage target by 2022 (from 2.6x on an as-reported basis as of June 30, 2021) because of healthy EBITDA and free cash flow growth. The company's 2.5x leverage target translates into 2.8x on an S&P Global Ratings-adjusted basis, providing modest cushion against our adjusted 3x downgrade threshold at the 'A-' rating level. This cushion could expand further if the company exercises its put/call option in Hulu in 2024 and uses any

...Comcast has significant financial flexibility, even after capital returns, internal investments, and modest merger and acquisition (M&A) activity, to remain within the thresholds for the 'A-' rating. The 'A-' issuer credit rating reflects Comcast's history of prudent financial risk management and its continued ability to balance conservative credit metrics with shareholder returns (dividends and share repurchases) and acquisitions. We believe the company views the 'A-' rating, and the access to the capital markets that such a rating allows, as a strategic advantage over its lower-rated peers. Even after including roughly $10 billion per year over the next few years toward shareholder-friendly actions (about $5 billion in dividends and $5 billion in share repurchases) and $14 billion in annual capital expenditures and assuming $1 billion in tuck-in M&A, we expect Comcast could deleverage below its 2.5x leverage target by 2022 (from 2.6x on an as-reported basis as of June 30, 2021) because...

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