Moody’s assigns Royal Caribbean notes Ba2

Moody’s Investors Service said it assigned a Ba2 rating to Royal Caribbean Cruises Ltd.’s proposed senior guaranteed note issuance.

The proceeds of the planned issuance of $1 billion senior guaranteed notes due 2023 and $1 billion of unrated senior convertible notes will be used for general corporate purposes, including possibly the repayment of debt.

“The additional $2 billion of liquidity will ensure Royal Caribbean can get through this period of suspended operations and material monthly cash burn,” said Pete Trombetta, a Moody’s lodging and cruise analyst, in a press release.

Moody’s said it estimates the offerings will give Royal Caribbean an added seven to add months with no operations.

The company’s other ratings are unchanged including its Ba1 corporate family rating, Ba1-PD probability of default rating, Baa3 senior secured rating and Ba2 senior unsecured rating.

The outlook remains negative.

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