Moody’s Upgrades Royal Caribbean’s Senior Unsecured Rating

Image Courtesy: Royal Caribbean

The senior unsecured rating of Miami-based cruise operator Royal Caribbean Cruises (RCL) has been upgraded to Baa3 from Ba1, LGD 4, according to Moody’s ratings agency. 

The rating outlook is stable.

Moody’s said that the upgrade acknowledges RCL’s continued strong earnings growth which has led to an improvement in operating margins and credit metrics.

The upgrade also recognizes that the agency expects RCL’s earnings growth to remain strong as a result of the full year impact of capacity expansion in 2016, its pipeline of new ship deliveries, and a strong booked position.

Additionally, Moody’s expects RCL’s debt to EBITDA to remain stronger than 3.75x and EBITA to interest expense to remain above 4.0x.

“Royal Caribbean is committed to maintain credit metrics at levels appropriate for the Baa3 rating. While we anticipate they will resume share repurchases, we expect they will only be financed with debt to the extent that debt to EBITDA remains below their 3.5x stated leverage target,” Maggie Taylor, Senior Vice President with Moody’s, commented.

RCL operates six brands – including three through joint ventures. The six brands operate a combined 49 cruise ships with an aggregate capacity of 123,270 berths.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Posidonia 2018

Posidonia, the international shipping exhibition, has long been established as one of the major calendar events…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

THE 7TH EDITION OF NAVALIA, INTERNATIONAL SHIPBUILDING EXHIBITION 2018

The event wanted to be from the beginning a reference for the naval sector and to serve as a tool to attract investors and contracts for the industry…

read more >

BlueWeek2018

The BlueWeek2018 will be held on 28-29-30 May in Rotterdam, under the auspices of the Blue Forum…

read more >