S&P: Issue has no impact on Star Cruises

Standard & Poor's said the potential rights issue by Star Cruises Ltd. (BB-/stable) should not by itself have a positive impact on the rating on the company.

The potential proceeds are expected to only partially mitigate Star Cruises' highly leveraged financial risk profile. The company has a very aggressive financial policy, S&P said.

Even with the infusion of the proposed fresh capital, Star Cruises' pro-forma capital structure based on June 2006 financials remains aggressive with a debt-to-EDITDA ratio above 9x, the agency said.

Star Cruises continues to maintain its established market position in Asia, mainly due to its well-known brand, S&P added.

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