Carnival Corporation - Moody's Global Credit Research

Carnival Corporation

Carnival Corporation - Moody's Global Credit Research
Carnival Corporation
Published Aug 29, 2022
Published Aug 29, 2022
Price US$ 750.00  |  Buy this Report Now

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Report Type:

LGD Assessment

Company:
Issuer
Carnival Corporation
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Carnival Holdings (Bermuda) Limited: Covenant Quality Post-Sale Snapshot: $2,030m 10.375% Senior Priority Notes due 2028 - Covenant Quality Assessment – 2022/11/30 – US$ 750.00 – ...Issuer: + Carnival Holdings (Bermuda) Limited Sector: + Leisure, Lodging & Entertainment Use of proceeds: + General corporate purposes...

Carnival Corporation - August 2022 (LTM): Peer Snapshot - Peer Snapshot – 2022/11/04 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival LGD for MDC 10.2022 - LGD Assessment – 2022/10/27 – US$ 750.00

Carnival Corporation: Update to credit analysis - Credit Opinion – 2022/10/20 – US$ 250.00 – ...Carnival Corporation and Carnival plc (together "Carnival"; B2 negative) is the largest worldwide cruise line in terms of pre-pandemic revenue, fleet size and number of passengers carried and its brand diversification. The company benefits from its adequate liquidity ¡ with cash of $7.1 billion at August 31, 2022 ¡ as it recovers from the impact of the pandemic. Carnival will also benefit over the long run from the value proposition of a cruise vacation relative to land-based destinations as well as a group of loyal cruise customers that will support a base level of demand. Carnival's credit metrics will remain weak ¡ we forecast that Carnival's debt/EBITDA will exceed 7x at the end of 2023 (includes Moody's standard adjustments). The company's EBITDA turned positive in the third quarter of 2022 but free cash flow available for debt reduction will continue to be constrained by rising interest costs and new ship commitments. The normal ongoing credit risks include the highly seasonal and...

Moody's assigns B2 to Carnival's senior guaranteed notes, no change to B2 CFR - Rating Action – 2022/10/18 – 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: Update to credit analysis following downgrade to B2 - Credit Opinion – 2022/08/11 – US$ 250.00 – ...Carnival Corporation and Carnival plc's (together "Carnival"; B2 negative) credit profile is supported by its adequate liquidity given its sizeable cash balances, its pre-pandemic position as the largest worldwide cruise line in terms of revenue, fleet size and number of passengers carried and its brand diversification. We believe Carnival will also benefit over the long run from the value proposition of a cruise vacation relative to land-based destinations as well as a group of loyal cruise customers that will support a base level of demand. Carnival's credit profile is constrained by its very weak credit metrics ¡ Moody's forecasts that carnival's debt/ EBITDA will exceed 7x at the end of 2023 (includes Moody's standard adjustments). The company's EBITDA is expected to turn modestly positive in the third quarter of 2022 but free cash flow available for debt reduction will continue to be constrained by rising interest costs and new ship commitments over the next two years. The normal ongoing...

Moody's downgrades Carnival's CFR to B2; outlook is negative - Rating Action – 2022/08/08 – 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 - May 2022 (LTM): Peer Snapshot - Peer Snapshot – 2022/07/29 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

Carnival Corporation: Covenant Quality Post-Sale Snapshot: $1,000m Senior Unsecured Notes due 2030 - Covenant Quality Assessment – 2022/06/02 – US$ 750.00 – ...Cash leakage/risky investments: (i) RPs can only be made in reliance on the RP income basket if both the $1 debt test and a leverage ratio test are met (neither is satisfied as of the issue date); (ii) until such time as access conditions are met, RPs can be made with carve-outs, but they are de minimis in size Risky investments: (i) asset sale proceeds are not permitted to be reinvested in current assets Leveraging: (i) due to the negative EBITDA the Company cannot initially satisfy the $1 debt test Structural subordination: (i) the Issuer and guarantors represent substantially all cruise- related revenues, EBITDA and total assets; (ii) future guarantee requirement triggers with any debt guaranteed by the non-guarantors...

Carnival Corporation - February 2022 (LTM): Peer Snapshot - Peer Snapshot – 2022/05/02 – US$ 750.00 – ...Carnival Corporation Hilton Worldwide Holdings Inc. NCL Corporation Ltd. Royal Caribbean Cruises Ltd....

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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.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Carnival Corporation" Aug 29, 2022. Alacra Store. Jul 23, 2024. <http://www.alacrastore.com/moodys-credit-research/Carnival-Corporation-PBC_1338916>
  
APA:
Moody's Global Credit Research. (). Carnival Corporation Aug 29, 2022. New York, NY: Alacra Store. Retrieved Jul 23, 2024 from <http://www.alacrastore.com/moodys-credit-research/Carnival-Corporation-PBC_1338916>
  
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