Moody’s assigns Carnival loan Baa3

Moody’s Investors Service said it assigned a Baa3 rating to Carnival Corp.’s planned $1.5 billion senior secured term loan B.

At the same time, Moody’s downgraded the company’s senior unsecured rating to Ba2 from Ba1. Carnival’s other ratings are unchanged, including its Ba1 corporate family rating. The outlook remains negative.

The proceeds will be used to bolster the company’s liquidity.

“The downgrade of Carnival’s unsecured rating reflects the incremental $1.5 billion of secured debt ahead of it in the capital structure, which along with the company’s March issuance of $4 billion of senior secured notes, would account for approximately 25% of the company’s total debt,” said Pete Trombetta, a Moody’s lodging and cruise analyst, in a press release.

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