Moody's trims Royal Caribbean

Moody's Investors Service said it downgraded Royal Caribbean Cruises Ltd.'s ratings including its corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD, senior secured rating to Ba3 from Ba2 and senior unsecured rating to B3 from B2. The agency also lowered the company's speculative grade liquidity rating to SGL-3 from SGL-2 and changed the outlook to stable from negative.

"The downgrade reflects weaker than expected recovery in 2022 which will result in Royal Caribbean generating less than $1 billion of EBITDA this year," stated Pete Trombetta, a Moody's vice president and senior analyst, in a press release.

The improved outlook reflects Royal Caribbean's adequate liquidity and a forecast that it will deliver earnings leading to debt/EBITDA improving to above 6.5x in 2023, the agency said.

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