S&P rates Royal Caribbean notes B

S&P said it assigned its B issue-level rating to Royal Caribbean Cruises Ltd.'s planned $650 million of senior unsecured notes due in 2026. The recovery rating is 4, reflecting an expectation for average (30%-50%; rounded estimate: 35%) recovery in default.

“Our B issue-level rating and 4 recovery rating on Royal's unsecured and unguaranteed debt are unchanged. However, recovery prospects for Royal's unsecured and unguaranteed debt may be impaired if the company incurs further additional unsecured and unguaranteed debt.,” S&P said in a press release. Royal Caribbean’s other ratings are also unchanged, including the BB- and 1 recovery ratings on its senior secured notes.

Royal intends to use proceeds primarily to refinance $620 million in senior secured notes issued by Royal's wholly owned subsidiary Silversea Cruise Finance Ltd.

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