Tuesday, June 23, 2020

"Cruise operator Carnival's credit rating cut to junk status by S&P" (CCL)

A bit behind the curve, eh what?
From Reuters:
Ratings agency Standard & Poor’s on Tuesday downgraded bonds of Carnival Corp to junk status, forecasting continued weak demand for the cruise industry hammered by the COVID-19 pandemic.
Standard & Poor’s cut its rating on the world’s biggest cruise operator’s secured bonds to ‘BB+’ from ‘BBB-‘, and its unsecured bonds to ‘BB-‘ from ‘BBB-‘. Both are now regarded as non-investment grade or junk bonds.

Carnival’s overall issuer credit rating was also lowered to ‘BB-‘ from ‘BBB-‘. Last month, Moody’s Investors Service also cut the company’s rating to junk status.

Earlier in June, Carnival reported record $4.4 billion in preliminary quarterly losses after its business was crippled by the health crisis, forcing it to take major write-downs on the disposal of some docked ships....MORE