S&P puts Royal Caribbean on watch

S&P said it placed all ratings on Royal Caribbean Cruises Ltd. and its majority-owned subsidiary Silversea Cruise Holding Ltd., including the BBB- issuer credit rating on Royal, on CreditWatch with negative implications.

“We believe reduced demand for cruises stemming from the broadening global reach of the coronavirus (Covid-19) and increasing travel fears will drive our measure of adjusted leverage for Royal Caribbean Cruises Ltd. to around or modestly above our downgrade threshold this year,” S&P said in a news release.

“Given recent events, including highly publicized quarantines, incidences of Covid-19 on cruise ships, and travel advisories, we believe it is too early to determine the magnitude and duration of the negative impact of the virus on Royal's credit measures.”

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