...October 19, 2021 SAN FRANCISCO (S&P Global Ratings) Oct. 19, 2021--S&P Global Ratings today assigned its 'B' issue-level rating to U.S.-based cruise operator Carnival Corp.'s proposed $1.5 billion senior unsecured notes. The recovery rating is '4', indicating our expectation for average (30%-50%; rounded estimate: 45%) recovery for noteholders in the event of a default. Carnival plans to use proceeds from the notes to prefund a portion of its $2.4 billion of debt maturities in fiscal 2022. Since the transaction is largely debt for debt, it does not affect our 'B' issuer credit rating or negative rating outlook on Carnival. We continue to expect adjusted credit measures in fiscal 2021 (ending Nov. 30) to remain very weak given a gradual resumption of sailings over the past few quarters, which have occurred at materially lower occupancy than in 2019. Further, we believe adjusted leverage may remain high through 2022 because we anticipate Carnival will not be operating at 100% of its available...
