S&P puts Royal Caribbean on watch

Standard & Poor's said it placed its BB corporate credit rating and all issue-level ratings for Royal Caribbean Cruises Ltd. on CreditWatch with negative implications.

The agency said the CreditWatch listing reflects its expectation that, based on recent booking and pricing trends, the company is unlikely to meet the projections incorporated into the BB corporate credit rating.

S&P previously indicated an expectation for relatively flat EBITDA performance and an increase in funded debt balances of slightly more than $1 billion during 2009, driven by declines in net revenue yields in the mid-single-digit percentage area. However, based on more recent guidance provided by the company, including an expectation for declines in 2009 net revenue yields in the 9% to 13% range, the agency is concerned about the company's ability to maintain credit measures that are in line with the current rating.

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