S&P ups Royal Caribbean to BB

Standard & Poor's said it raised Royal Caribbean Cruises Ltd.'s corporate credit rating to BB from BB-.

The outlook is stable.

The rating reflects a high level of debt in the capital structure, the capital-intensive nature of the cruise industry, lack of flexibility with respect to committed ship orders and the sensitivity of the travel and leisure sector to economic cycles, S&P said.

The rating also considers Royal's solid brands, a relatively young and high-quality fleet of ships, high barriers to entry in the cruise industry and an experienced management team, the agency said.

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