Moody's affirms NCL, Star

Moody's Investors Service said it has withdrawn the B2 foreign currency long-term rating of NCL Corp. Ltd. on the proposed $350 million bond issue. The rating withdrawal follows the company's recent decision not to proceed with the issuance.

At the same time, Moody's has affirmed NCL's Ba3 senior implied rating and assigned a B2 issuer rating with a stable outlook and has affirmed Star Cruises Ltd.'s (which owns 100% of NCL) Ba3 senior implied rating and B3 issuer rating with a stable outlook.

Moody's said these actions reflect the rating agency's view that NCL's decision to withdraw the bond issuance does not materially affect either the company's liquidity or its debt maturity profile.

The rating affirmation reflects an expectation that NCL will be able to achieve committed financing for its planned capex in the next two years. Moody's understands that NCL is considering alternative financing options for those expenditures following the withdrawal of the bond issue. Failure in coming months to obtain the replacement financing could put downward pressure on the rating if it were to affect its planned fleet expansion and consequent revenue profile in the next three years.

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