Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2 - Moody's Global Credit Research

Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2

Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2 - Moody's Global Credit Research
Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2
Published Jul 13, 2023
6 pages (3125 words) — Published Jul 13, 2023
Price US$ 180.00  |  Buy this Report Now

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Report Type:

Rating Action

Company:
CARNIVAL CORPORATION
Issuer
Carnival Corporation , Carnival Holdings (Bermuda) Limited , Carnival plc , Long Beach (City of) CA
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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: Covenant Quality Post-Sale Snapshot: $500m 7.00% First-Priority Senior Secured Notes due 2029 - Covenant Quality Assessment – 2023/08/18 – US$ 750.00 – ...+ 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...

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...

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....

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

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.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2" Jul 13, 2023. Alacra Store. Jul 27, 2024. <http://www.alacrastore.com/moodys-credit-research/Moody-s-changes-Carnival-s-outlook-to-stable-from-negative-affirms-B2-CFR-and-upgrades-secured-rating-to-Ba2-PR_478600>
  
APA:
Moody's Global Credit Research. (). Moody's changes Carnival's outlook to stable from negative; affirms B2 CFR and upgrades secured rating to Ba2 Jul 13, 2023. New York, NY: Alacra Store. Retrieved Jul 27, 2024 from <http://www.alacrastore.com/moodys-credit-research/Moody-s-changes-Carnival-s-outlook-to-stable-from-negative-affirms-B2-CFR-and-upgrades-secured-rating-to-Ba2-PR_478600>
  
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