S&P upgrades Carnival

S&P said it raised the corporate credit and senior unsecured ratings on Carnival Corp. to A- from BBB+ and removed the ratings from CreditWatch, where they were placed with positive implications in June.

The outlook is stable.

The agency also said it affirmed the company’s A-2 commercial-paper rating.

The upgrades reflect Carnival's continued good operating performance and an expectation that cruise demand and pricing will grow in 2017, S&P said.

This will absorb measured capacity growth and allow Carnival to sustain lease- and port-commitment adjusted debt-to-EBITDA in the low-2x range, the agency said.

The stable outlook reflects a belief that good anticipated cruise demand and pricing will allow Carnival to grow net yields across its portfolio of brands, S&P added.

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