Moody's may cut Star Cruises

Moody's Investors Service said it placed the B1 corporate family rating of Star Cruises Ltd. on review for possible downgrade.

The review has been prompted by Star Cruises announcement that it and Genting International plc, a subsidiary of Genting Bhd. (A3 on review for possible downgrade), will acquire a 75% interest in Macau Land Investment Corp., which will develop a hotel and casino project on the foreshore of downtown Macau.

This project will increase Star Cruises' financial leverage, development and execution risks and capital requirements in the near- and medium-term, the agency said

The challenging operating environment for the company's cruise shipping business and its already high financial leverage are other factors contributing towards the rating action, Moody's said.

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