S&P downgrades Carnival

Standard & Poor's said it lowered the long-term corporate credit rating on Carnival Corp. to BBB+ from A- and affirmed its short-term ratings at A-2.

The outlook is negative.

S&P said the downgrade follows the company's recent first-quarter earnings announcement, in which Carnival revised its forecast for declines in net revenue yields on a current dollar basis for fiscal 2009 ending November.

"We have revised our expectations for 2009 and 2010, and now project net revenue yields to decline in the high-teens percentage area in 2009, which, despite scheduled capacity increases in fiscal 2009 of about 5%, we estimate would result in EBITDA declines in the mid- to high-teens percentage range," S&P analyst Ben Bubeck said in a statement.

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