S&P boosts Royal Caribbean

S&P said it upgraded its ratings for Royal Caribbean Cruises Ltd. to BB- from B, its senior secured debt to BB+ from BB-, its priority guaranteed notes to BB- from B+ and its senior unsecured debt to BB- from B.

“Royal's 2023 booked position and strong pricing will support faster-than-expected improvement in leverage this year. Royal raised its full-year, constant currency net yield guidance for the second time this year. The midpoint of its current guidance is 450 basis points higher than the guidance it provided on its first quarter earnings call in May. The company made this adjustment based on strong ticket pricing and onboard revenue and higher booking volumes,” S&P said in a press release.

The agency said it now expects the company to shave its leverage to about 5.4x by Dec. 31 compared with 7x previously.

The outlook is stable.

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