S&P upgrades Silversea Cruise

S&P said it raised its issuer credit rating on Silversea Cruise Holding Ltd. to BB from B and removed it from CreditWatch, where it was placed with positive implications on June 14.

The outlook is stable.

At the same time, the agency raised the issue-level rating on the company's $620 million senior secured notes due 2025 to BBB- from BB- and removed it from CreditWatch positive. The recovery rating remains 1, reflecting an expectation for very high recovery (90% to 100%; rounded estimate 95%) for lenders in a payment default.

“The upgrade follows higher-rated Royal Caribbean Cruises Ltd.'s acquisition of a 66.7% equity stake in Silversea and reflects our belief that the acquisition of Silversea is strategic to Royal and therefore Royal will provide Silversea at least some level of financial support for a period of time,” S&P said in a news release.

“This expected support results in a rating that is three notches higher than Silversea would otherwise be on a stand-alone basis.”

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