S&P rates Royal Caribbean notes B+

S&P said it rated Royal Caribbean Cruises Ltd.’s planned $700 million of priority guaranteed notes B+ with a 2 recovery rating. The agency also revised its outlook for Royal to stable from negative and affirmed all its ratings.

“Royal's 2023 booked position provides sufficient revenue visibility to stabilize the rating outlook and should support significant improvement in credit measures this year. Royal reported on its recent earnings call that its bookings are well within historical ranges and at record prices, despite a 14% increase in capacity from 2019.

Additionally, the company's booking window has moved back toward pre-pandemic levels, which contributes to the company's record-breaking ‘wave’ season–the period early in the year when cruise operators typically enjoy significant booking activity for 2023 vacations,” S&P said in a press release.

Royal plans to use the proceeds to repay principal payments on debt maturing in 2023 and/or 2024.

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