S&P cuts Lindblad Expeditions

S&P said it lowered its rating on Lindblad Expeditions Holdings Inc. to B+ from BB- and the company’s issue-level ratings by a notch. The agency also placed the ratings on CreditWatch with negative implications.

“We lowered our ratings on Lindblad because we expect leverage will increase above our 4x downgrade threshold in light of lower expected EBITDA this year. The downgrade reflects the likelihood that Lindblad will have significantly higher leverage through 2021 compared to our previous base-case forecast. It stems from a rapid decline in consumer sentiment toward travel and cruises, travel restrictions and advisories, and quarantines in the face of the coronavirus pandemic and suspension of operations through April 30,” said S&P in a press release.

In resolving the credit watch, S&P plans to update its base-case forecast for EBITDA, cash flow and leverage in light of the suspension of operations and weak demand for cruises and travel.

© 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.