Research Update: Carnival Corp. Outlook Revised To Positive On Favorable Bookings And Expected Deleveraging; 'BB' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: Carnival Corp. Outlook Revised To Positive On Favorable Bookings And Expected Deleveraging; 'BB' Rating Affirmed

Research Update: Carnival Corp. Outlook Revised To Positive On Favorable Bookings And Expected Deleveraging; 'BB' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: Carnival Corp. Outlook Revised To Positive On Favorable Bookings And Expected Deleveraging; 'BB' Rating Affirmed
Published Dec 23, 2024
9 pages (4160 words) — Published Dec 23, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Global cruise operator Carnival Corp. reported good forward bookings for 2025 with approximately two-thirds of 2025 inventory booked at higher prices than in 2024, providing good revenue visibility. We believe growth in revenue and EBITDA will improve S&P Global Ratings-adjusted debt to EBITDA to about 3.9x by the end of fiscal 2025, well under our 4.5x upgrade threshold. We expect funds from operations (FFO) to debt will reach 19%, just under our 20% upgrade threshold, by the end of fiscal 2025 due to good operating performance, debt repayment, and refinancing activity. Therefore, we revised our outlook on Carnival to positive from stable and affirmed all ratings, including the 'BB' issuer credit rating. The positive outlook reflects our expectation that Carnival's

  
Brief Excerpt:

...- Global cruise operator Carnival Corp. reported good forward bookings for 2025 with approximately two-thirds of 2025 inventory booked at higher prices than in 2024, providing good revenue visibility. - We believe growth in revenue and EBITDA will improve S&P Global Ratings-adjusted debt to EBITDA to about 3.9x by the end of fiscal 2025, well under our 4.5x upgrade threshold. We expect funds from operations (FFO) to debt will reach 19%, just under our 20% upgrade threshold, by the end of fiscal 2025 due to good operating performance, debt repayment, and refinancing activity. - Therefore, we revised our outlook on Carnival to positive from stable and affirmed all ratings, including the '##' issuer credit rating. - The positive outlook reflects our expectation that Carnival's forward bookings will support FFO to debt increasing closer to our 20% upgrade threshold over the next 12 months and leverage improving to around 4x....

  
Report Type:

Research Update

Ticker
CCL
Issuer
Carnival Corp.
GICS
Hotels, Resorts & Cruise Lines (25301020)
Sector
Global Issuers, Structured Finance
Country
Panama
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Carnival Corp. Outlook Revised To Positive On Favorable Bookings And Expected Deleveraging; 'BB' Rating Affirmed" Dec 23, 2024. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Carnival-Corp-Outlook-Revised-To-Positive-On-Favorable-Bookings-And-Expected-Deleveraging-BB-Rating-Affirmed-3303459>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Carnival Corp. Outlook Revised To Positive On Favorable Bookings And Expected Deleveraging; 'BB' Rating Affirmed Dec 23, 2024. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Carnival-Corp-Outlook-Revised-To-Positive-On-Favorable-Bookings-And-Expected-Deleveraging-BB-Rating-Affirmed-3303459>
  
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