S&P puts Royal Caribbean Cruises on watch

Standard & Poor's said it placed its ratings on Royal Caribbean Cruises Ltd. (RCL), including its BBB- corporate credit rating, on CreditWatch with negative implications.

The agency noted that the CreditWatch listing follows the company's announcement today that it plans to acquire Pullmantur SA for €430 million plus the assumption of €270 million of net debt.

While the combination will increase RCL's fleet by five cruise ships and will strengthen its presence in Europe, particularly in Spain where Pullmantur has a significant market share, pro forma credit measures are now expected to be weak for current ratings, the agency added.

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