S&P boosts Royal Caribbean

Standard & Poor's said it raised its ratings on Royal Caribbean Cruises Ltd (RCL), including its corporate credit rating to BBB- from BB+.

In addition, the ratings were removed from CreditWatch with positive implications. The outlook is stable.

The agency said the upgrade reflects a significant improvement in credit measures during 2005 and its expectation that industry conditions will support credit measures in line with the new ratings during the intermediate term.

Ratings on RCL reflect its solid brands, a relatively young and high-quality fleet of ships, high barriers to entry in the cruise industry and an experienced management team, S&P said, noting these factors are somewhat tempered by the capital-intensive nature of the cruise industry, and the sensitivity of the travel and leisure sector to economic cycles.

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