Moody's cuts Carnival to Baa1

Moody's Investors Service said it downgraded Carnival Corp. & plc's senior unsecured rating to Baa1 from A3.

The outlook is stable.

Moody's said it had expected Carnival's overall credit profile that weakened in 2012 (due to the Costa Concordia accident and weak European demand) to improve in 2013.

However, "higher discounting and promotional activity in the aftermath of several ship incidents aboard Carnival ships in 2013 will cause profitability, leverage, and coverage metrics to deteriorate further outside of the levels appropriate for an A3 ratings pursuant to Moody's Global Lodging and Cruise methodology," Moody's analyst Peggy Holloway said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.