S&P: Royal Caribbean up to positive

Standard & Poor's said it revised its outlook on Royal Caribbean Cruises Ltd. to positive from stable. Royal Caribbean's ratings, including its BB+ corporate credit rating, were affirmed.

S&P also affirmed Royal Caribbean's BB+ senior unsecured debt, BB+ senior unsecured shelf registration and B+ preferred stock shelf registration.

S&P said the outlook revision reflects the expectation that credit measures will continue to improve meaningfully in 2005 driven by the repayment of more than $900 million in debt, along with anticipated EBITDA growth.

The significant level of debt reduction is expected to occur as the company uses excess cash for this purpose and with the expectation that discretionary cash flow will grow significantly in 2005 as the company will not accept delivery of any ships, according to S&P.

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