(Alliance News) - Moody's Investors Service on Wednesday placed its ratings for Carnival PLC and Carnival Corp on review for a downgrade.
Moody's said the Miami-Florida-based cruise ship operator's B1 corporate family rating, B1-PD probability of default rating, Ba2 first lien senior secured rating, B1 second lien secured rating, and existing B2 senior unsecured rating were all under review.
Moody's said the ongoing coronavirus outbreak, government measures put in place to contain it, and the weak global economic outlook continues to disrupt the cruise sector.
"The review for downgrade will focus on the timeline for Carnival to return to service, the potential to ramp up operations in a meaningful way in 2021, and the resulting impact to its liquidity," stated Pete
Trombetta, Moody's lodging and cruise analyst.
Moody's does not expect US cruise operations will be able to resume until there are indications that the coronavirus spread is slowing, the analyst added.
Carnival shares closed up 0.3% at 1,322.00 pence in London Wednesday and are down 0.4% to USD20.96 in New York.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Carnival (CCL)