S&P gives NCL notes BB+

S&P said it assigned its BB+ issue-level rating and 3 recovery rating to NCL Corp. Ltd.’s proposed $565 million senior unsecured notes due 2024. The 3 recovery rating indicates S&P’s expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for noteholders in the event of a payment default.

The company plans to use the proceeds to redeem its $565 million 4 ¾% senior unsecured notes due 2021. “Because we view the transaction as essentially debt for debt, it does not affect our forecast credit measures for NCL. We continue to expect the company’s adjusted leverage to remain in the low- to mid-3x area, on average, through 2020.Our BB+ issuer credit rating on NCL is unchanged,” S&P said in a press release.

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