S&P puts Royal Caribbean on positive watch

Standard & Poor's said it placed its ratings on Royal Caribbean Cruises Ltd., including its BB+ corporate credit rating, on CreditWatch with positive implications. Ratings placed on CreditWatch also include senior unsecured debt at BB+ and the preferred stock at B+.

A primary element of S&P's review will be to consider Royal Caribbean's intermediate-term operating prospects because the company is expected to have more limited capacity to repay debt in 2006 and 2007 and will likely be a borrower in 2008, S&P said.

The ability to sustain or improve credit measures beyond 2005 will be linked to earnings remaining stable or growing, S&P said, adding that if the review results in an upgrade, it will be limited to one notch.

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