S&P rates Carnival notes B

S&P said it assigned its B issue-level and 3 recovery ratings to global cruise operator Carnival Corp.'s proposed $1 billion and €350 million in senior unsecured notes due 2026. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery for noteholders in default.

Proceeds are expected to be used for general corporate purposes, including enhancing liquidity, making certain vessel payments, and possibly refinancing upcoming debt maturities.

“The proposed debt raise does not materially alter our forecast for adjusted leverage because recent equity issuances largely offset the incremental debt,” S&P said in a press release.

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