| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Carnival Corp. > News item |
S&P cuts Carnival, rates notes BBB-
S&P said it downgraded Carnival Corp.’s ratings to BBB- from BBB and assigned BBB- ratings to its proposed $3 billion in senior secured notes and $1.75 billion in convertible notes to offset the losses from the temporary suspension of operations and an expected net operating loss. The company is also planning to sell $1.25 billion in common stock.
“The downgrade reflects our expectation that Carnival will likely generate minimal, if any, EBITDA in 2020 because of the suspension of cruises and our view that cruises could remain suspended into the seasonally strongest third quarter,” the agency said in a press release.
“We believe that the proposed financing transaction, if successfully completed, will provide Carnival sufficient liquidity sources to support its needs under our current base-case forecast,” said S&P.
The agency said all ratings remain on CreditWatch with negative implications.
© 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.