Moody's: Star Cruises on review

Moody's Investors Service said it has put on review the B1 corporate family rating of Star Cruises Ltd. with direction uncertain.

The agency said that the review has been prompted by the announcement that private equity group, Apollo Management, LP, has agreed to make a $1 billion cash investment in NCL for a 50% equity interest, with Star Cruises continuing to own the remaining 50% stake.

" Star Cruises's current financial profile is largely dragged down by its consolidation with NCL. An improvement in the latter's financial and liquidity positions could lower SCL's financial burden and therefore the need to provide ongoing support to NCL," said Kaven Tsang, Moody's lead analyst for Star Cruises. "A potential disassociation with NCL, such as a lowering in ownership level, could also enhance Star Cruises 's adjusted key credit metrics.

"The current rating of Star Cruises incorporates a 2-notch uplifted based on expectations of ongoing support via Resorts World Bhd. from Genting Bhd. and its ultimate shareholder, the Lim family."

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