Carnival Corporation: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029 - Moody's Global Credit Research

Carnival Corporation: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029

Carnival Corporation: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029 - Moody's Global Credit Research
Carnival Corporation: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029
Published Aug 18, 2023
11 pages (5402 words) — Published Aug 18, 2023
Price US$ 750.00  |  Buy this Report Now

About This Report

  
Brief Excerpt:

...+ Liens subordination: (i) provides for all liens to fall-away tied to a ratings upgrade; (ii) to keep equal and ratable clause in certain unsecured debt documents from triggering, a Collateral savings clause could spring, resulting in a reduction in Collateral securing the Notes + Structural subordination. Both the 2028 Senior Priority Notes and the New RCF structurally subordinate the Notes and are supported by vessels + CoC: (i) only one of five standard triggering events, and such event is subject to a rating condition + HY covenant termination: HY covenants, including the future guarantee requirement, terminate if the Notes are IG-rated by at least two rating agencies and no default...

  
Report Type:

Covenant Quality Assessment

Company:
Issuer
Carnival Corporation
Format:
PDF Adobe Acrobat
Buy Now

Carnival Corporation - February 2024 (LTM): Peer Snapshot - Peer Snapshot – 2024/04/26 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival Corporation: Update to credit analysis following outlook change to positive - Credit Opinion – 2024/03/07 – US$ 250.00 – ...Carnival Corporation is the largest worldwide cruise line based on revenue, fleet size and number of passengers boarded. The company operates the largest number and most diverse cruise line brands, addressing all segments of the ocean cruise market. Carnival will continue to benefit from the value proposition of a cruise vacation relative to land-based destinations and a group of loyal cruise customers that support a recurring base level of demand. Carnival also benefits from its good liquidity including cash of about $2.4 billion and $3 billion of availability under its revolving credit facility. Carnival's ratings are constrained by the need for continued growth in pricing and bookings in order to generate sufficient free cash flow to de- leverage the capital structure. We forecast debt/EBITDA will decline to below 5x with FFO + interest/interest coverage improving to almost 3x over the next 12 to 18 months. Demand is seasonal and capital intensity is also significant. Other risks include...

Moody's affirms Carnival Corporation's B2 corporate family rating, changes outlook to positive - Rating Action – 2024/03/01 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT...

Carnival Corporation - November 2023 (LTM): Peer Snapshot - Peer Snapshot – 2024/02/22 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival Corporation - August 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/10/27 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival Corporation - May 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/08/04 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival Corporation: Update to credit analysis following outlook change to stable - Credit Opinion – 2023/07/17 – US$ 250.00 – ...Carnival Corporation is the largest worldwide cruise line based on revenue, fleet size and number of passengers boarded. The company has nine brands, more than any other cruise company. These factors help mitigate the credit risk inherent in the company's high financial leverage. Carnival will also continue to benefit from the value proposition of a cruise vacation relative to land-based destinations and a group of loyal cruise customers that support a recurring base level of demand. Carnival's credit profile is constrained by its high debt/EBITDA ¡ which Moody's forecasts will remain above 6x through 2024 ¡ and modest free cash flow. Moody's expects modest reduction of debt over the next 18 months. Demand is highly seasonal and capital intensity is also significant. Other risks include customers' alternative vacation options, the cruise industry's exposure to economic and industry cycles, weather- related incidents and geopolitical events. Cash of $4.5B and a fully available $2.9B revolver...

Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2 - Rating Action – 2023/07/13 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Carnival Corporation - February 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/05/05 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival Corporation - November 2022 (LTM): Peer Snapshot - Peer Snapshot – 2023/02/24 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

More from Moody's Global Credit Research

Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

About the Author


Cite this Report

  
MLA:
Moody's Global Credit Research. "Carnival Corporation: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029" Aug 18, 2023. Alacra Store. May 25, 2024. <http://www.alacrastore.com/moodys-credit-research/Carnival-Corporation-Covenant-Quality-Post-Sale-Snapshot-500m-7-00-First-Priority-Senior-Secured-Notes-due-2029-PBC_1378241>
  
APA:
Moody's Global Credit Research. (). Carnival Corporation: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029 Aug 18, 2023. New York, NY: Alacra Store. Retrieved May 25, 2024 from <http://www.alacrastore.com/moodys-credit-research/Carnival-Corporation-Covenant-Quality-Post-Sale-Snapshot-500m-7-00-First-Priority-Senior-Secured-Notes-due-2029-PBC_1378241>
  
US$ 750.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.