Moody's may cut Star Cruises

Moody's Investors Service said it will continue to review the B1 corporate family rating of Star Cruises Ltd. for possible downgrade, awaiting further developments and information disclosures with regard to its potential investment in the Philippine gaming market.

Moody's noted that Star Cruises has already paid $100 million to Alliance Global Group, Inc. as a refundable deposit for an extended exclusivity period to conduct due diligence.

The review for possible downgrade reflects that these potential investments and the associated development capital expenditure would increase Star Cruises' debt financing requirements and thus weaken its key credit metrics to a level that may not support its B1 rating, Moody's said.

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