S&P: Oceania Cruises on watch

Standard & Poor's said it placed its B+ corporate credit rating for Oceania Cruises Inc., as well as all related issue-level ratings, on Creditwatch with negative implications.

"The Creditwatch listing reflects its concern that the recent pullback in consumer discretionary spending will pressure both yields and occupancy to the extent that credit measures will no longer be supportive of the current rating," noted S&P credit analyst Ben Bubeck.

Like others in the cruise industry, Oceania has experienced slower bookings in recent months, and the booking window has contracted, the agency said, adding that revenue visibility has always been a source of credit strength for Oceania, as customers tend to book much farther in advance of their cruise when compared to forward bookings at some of Oceania's larger competitors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.