Moody's boosts Viking Cruises

Moody's Ratings said it upgraded the ratings of Viking Cruises Ltd., together with Viking Ocean Cruises Ltd. and Viking Ocean Cruises Ship VII Ltd., collectively Viking, including its probability of default rating to B1-PD from B2-PD, senior secured and backed senior secured ratings to Ba2 from Ba3 and senior unsecured ratings to B3 from Caa1.

“The upgrade of Viking's ratings reflects Moody's forecast that Viking will generate EBITDA of about $1.2 billion in 2024 driven by higher pricing and a 7% increase in capacity which will enable the company to reduce debt/EBITDA below 5x and increase FFO + interest expense/interest expense above 2x by the end of this year. Viking's adjusted gross margin per capacity day –– including both river and ocean cruises –– was about $506 in 2023, a 17% increase over 2019. Moody's also forecasts that pricing improvement will moderate to the mid-single digits in 2024,” the agency said in a press release.

The outlook is stable.

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