Moody’s rates Viking notes B1

Moody’s Investors Service said it assigned a B1 rating to Viking Cruises Ltd.’s proposed senior secured notes.

Also, the agency downgraded the senior secured rating to B1 from Ba3 and confirmed Viking’s B2 rating.

“The downgrade of the senior secured notes rating reflects the higher level of secured debt in the capital structure relative to unsecured debt following the proposed secured notes issuance. This shift in capital structure mix has likely reduced the level of recovery in a default scenario of the existing secured notes,” said Moody’s in a press release.

The notch above rating on the secured notes reflects the upstream guarantees from all of Viking’s subsidiaries and the first priority lien on 20 unencumbered Swiss river cruise vessels and intellectual property, the agency said.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.