S&P puts Star Cruises, NCL on watch

Standard & Poor's said it placed its BB corporate credit ratings on Star Cruises Ltd. and its wholly owned subsidiary, NCL Corp. Ltd., on CreditWatch with negative implications.

The agency said that the placement on CreditWatch negative reflects our concerns over the aggressive and further weakening in the financial risk profile resulting from the proposed acquisition of two new vessels by NCL.

S&P added that the rating on Star Cruises reflects its strategic importance to its parent, Genting Bhd. (BBB+/stable) and Star Cruises' established position in the Asian cruise market.

However, the rating remains constrained by Star Cruises' small size relative to its two main competitors and its less competitive and profitable fleet, the agency said.

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