Moody's: Star Cruises still on review

Moody's Investors Service said it will continue to review the B1 corporate family rating of Star Cruises Ltd. with direction uncertain.

The review was initiated in August after Apollo Management LP's announcement to invest $1 billion cash in NCL Corp. Ltd. for a 50% equity interest, with Star Cruises Ltd. continuing to own the remaining 50% stake.

The company's current financial profile is largely dragged down by its consolidation with NCL, Moody's said.

An improvement in the latter's financial and liquidity positions could lower Star Cruises financial burden and therefore the need to provide ongoing support to NCL, the agency said. A potential dissociation with NCL, as a result of the reduction in ownership level, could also enhance Star Cruises adjusted key credit metrics, Moody's added.

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