Moody's: NCL outlook to positive

Moody's Investors Service said it revised NCL Corp. Ltd.'s (Norwegian Cruise Line) rating outlook to positive from stable and affirmed the company's Ba3 corporate family rating and Ba3-PD probability of default rating.

The agency also affirmed Norwegian's senior unsecured ratings at B2, senior secured ratings at Ba2 and speculative grade liquidity rating at SGL-2.

Moody's said the outlook change reflects its view that increasing net revenue yields of 3.0% to 3.5% on rising capacity and cost efficiency will result in improved credit metrics. By year-end 2014, Moody's estimates adjusted debt/EBITDA will drop to around 4.5x from 4.9x at year-end 2013 and adjusted EBIT/interest will jump to 3.2x from 2.7x over the same time period.

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