S&P gives Oceania Cruises B, loans B, CCC+

Standard & Poor's said it assigned its B corporate credit rating and positive outlook to Oceania Cruises Inc.

At the same time, S&P said it assigned its B bank loan rating, the as the corporate credit rating and a recovery rating of 2 to the $325 million senior secured credit facility proposed jointly by Insignia Acquisition LLC, Nautica Acquisition LLC and Regatta Acquisition LLC.

The bank facility consists of a $25 million five-year revolving credit facility and a $300 million six-year term loan, the agency said.

The agency added that it assigned its CCC+ rating, two notches below the corporate credit rating and a recovery rating of 5 to Oceania Cruises' proposed $75 million seven-year second-lien term loan.

S&P said that the ratings on Oceania Cruises reflect the company's vulnerability within the cruise sector because of its small fleet and niche market strategy, minimal cash flow diversity with three ships, high debt leverage, the capital-intensive nature of the industry and the travel industry's susceptibility to economic cycles and global political events.

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