S&P affirms Carnival

Standard & Poor's said it assigned its A-2 rating to Carnival plc's proposed €600 million euro commercial paper program, which will be guaranteed by its affiliate Carnival Corp. Carnival plc's €600 million revolving credit facility will serve as backstop.

Concurrently, the ratings Carnival Corp., including its A- long-term and A-2 short-term corporate credit ratings, were affirmed. The outlook is stable.

S&P said the ratings on Carnival reflect its leading position in the global cruise industry, a solid operating track record, an experienced management team, a sizable cash flow base, and very high barriers to entry for new competition. These factors are somewhat offset by the capital-intense nature of the cruise industry, and the sensitivity of the travel and leisure sector to economic cycles.

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