Moody's rates Royal Caribbean notes Ba1

Moody's Investors Service said it has assigned Royal Caribbean's new $700 million senior unsecured note issuance a Ba1 rating and affirmed all existing long-term ratings.

The $700 million notes are to be issued in two tranches maturing in June 2013 and June 2016.

Moody's said it considers the new note issuance to be a credit positive in the sense that it eliminates putable debt from the capital structure.

However, the decision to repurchase common equity in anticipation of the zero-coupon conversion could result in a use of liquidity should the zeros fall out of the money and their conversion become less likely.

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