PRESS RELEASE: Moody's Revises Carnival's Outlook To Stable; Ratings Affirmed

29th Jun 2010 19:57

The following is a press release from Moody's Investors Service: Approximately $2.8 billion of debt affected New York, June 29, 2010 -- Moody's Investors Service today changed Carnival Corporation and Carnival plc's (Carnival & plc) rating outlook to stable from negative and affirmed all of the company's existing ratings. "The change in rating outlook reflects Moody's expectation that Carnival's credit profile will improve gradually due to improving demand and higher cruise pricing" , said Moody's Senior Analyst, Peggy Holloway. Demand for cruises continues to improve evidenced by stronger booking volumes and slightly higher net revenue yields. Although Carnival's profitability and coverage metrics are strong, they remain weak for the rating category. Yet Moody's expects higher cruise pricing (net revenue yield) to result in a gradual improvement in the company's credit profile over the next 12 to 18 months. Profitability improvement will be constrained by higher fuel costs and the strong dollar. However, capacity expansion will drive absolute earnings higher. Moody's affirmed Carnival & plc's short-term and long-term ratings. Carnival & plc's A3 rating reflects it leading market position in the global cruise industry, its diversified portfolio of global and regional brands, strong margins, good liquidity, and conservative financial management. Ratings affirmed: Carnival Corporation Senior unsecured notes at A3 Commercial paper at Prime-2 Carnival plc Senior unsecured notes at A3 Commercial paper at Prime-2 Moody's last rating action on Carnival took place on January 21, 2010 when Moody's indicated that the company's ratings were unaffected by the reinstatement of the company's dividend. The principal methodology used in rating Carnival Corporation was the Global Lodging rating methodology, published in December 2007 and available on www.moodys.com in the Rating Methodologies sub-directory under the Research and Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. Carnival Corporation and Carnival plc own the world's largest passenger cruise fleet. Headquartered in Miami, Florida, USA and London, England, Carnival Corporation and Carnival plc effectively merged under a dual listed company structure in 2003. Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S ("MIS") CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 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It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser. (END) Dow Jones Newswires June 29, 2010 14:57 ET (18:57 GMT)