Moody's gives Royal Caribbean notes Ba1

Moody's Investors Service said it assigned Royal Caribbean Ltd.'s new benchmark size euro senior unsecured notes Ba1, raised Royal Caribbean's speculative-grade liquidity rating to SGL-2 from SGL-3 and affirmed all other existing ratings.

The proceeds from the new note issuance will be used to prepay a portion of the outstandings under the €701 million, 364-day bridge that funded the acquisition of Pullmantur, the agency said.

Moody's added it considers the new note issuance to be a credit positive because it reduces Royal Caribbean's near-term debt maturity requirements.

Additionally, the size of the note issuance is large enough to materially boost Royal Caribbean's projected 12-month liquidity cushion and thereby change the SGL rating to SGL-2 from SGL-3, the agency said.

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