Moody's rates MISA notes B3

Moody's Investors Service said it assigned a B3 rating to MISA Investments Ltd.'s proposed approximate $150 million senior unsecured PIK toggle notes due 2018.

Net proceeds from the proposed notes will be used to fund a dividend to the company's shareholders.

MISA is the holding company of Viking Cruises, Ltd. that in turns owns Viking River Cruises Ltd. and Viking Ocean Cruises Ltd.

Moody's affirmed Viking Cruises Ltd.'s ratings, including its B1 corporate family rating, B1-PD probability of default rating and the B3 rating on its $250 unsecured guaranteed notes due 2022.

The rating outlook is stable.

Moody's said the B3 rating assigned to the notes reflects the considerable amount of debt that ranks ahead of the proposed notes as well as the company's plan to add new secured ship debt as it increases capacity over the next several years. The rating also considers that the notes will not be guaranteed by any subsidiaries, and that MISA's ability to make payments on the notes is limited by restrictive covenants in Viking's 8½% 2022 bond indenture and existing vessel financings, the agency said.

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