S&P assigns Royal Caribbean notes BB-

Standard & Poor's said it assigned Royal Caribbean Cruises Ltd.'s proposed $250 million senior unsecured notes due 2015 its issue-level rating of BB-, at the same level as the BB- corporate credit rating on the company.

The agency said it also assigned the proposed notes a recovery rating of 3, adding that proceeds from the debt issuance will be used for general corporate purposes, including repayment of amounts outstanding under the company's revolving credit facility.

In addition, the agency said it affirmed all of its outstanding ratings on the company, including the BB- corporate credit rating. The outlook is negative.

"The BB- rating on RCL reflects an aggressive financial risk profile, the capital-intensive nature of the cruise industry, and the sensitivity of the travel and leisure sector to economic cycles," said credit analyst Ben Bubeck.

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