S&P rates Oceania loan B+, lifts revolver to B+

Standard & Poor's said it revised the outlook on Oceania Cruises Inc. to positive from stable.

The agency also said it assigned a B+ rating to the company's proposed $249 million first-lien senior secured term loan due 2020 with a recovery rating of 2, indicating 70% to 90% expected default recovery.

The rating on the loan is one notch above the company's B corporate credit rating.

The agency also revised the recovery rating on the existing $75 million revolver due 2018 to 2, which indicates 70% to 90% expected default recovery, from 3, which indicates 50% to 70% expected recovery.

Subsequently, S&P also said it raised the rating on this debt to B+ from B in line with the issue-level rating on the proposed term loan.

The positive outlook revision reflects anticipated improvement in consolidated leverage measures at parent, Prestige Cruise Holdings Inc., resulting from debt repayment and good anticipated operating performance at both Oceania and its affiliate Seven Seas Cruises S de RL, the agency said.

The company plans to repay $50 million in term loan debt at Oceania and $50 million in term loan debt at Seven Seas, S&P said.

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