S&P: B to Viking Cruises notes

S&P said it revised the outlook on Viking Cruises Ltd. to positive from stable and affirmed all ratings, including the B corporate credit rating.

At the same time, the agency assigned a B issue-level rating to Viking's proposed $550 million senior unsecured notes due 2027. The 4 recovery rating indicates an expectation for average recovery (30% to 50%; rounded estimate: 40%) for lenders in the event of a payment default.

“The outlook revision to positive reflects our expectation that strength in forward booking trends at Viking will translate into stronger EBITDA growth than we previously expected such that adjusted leverage will improve to around 6x by the end of 2018 from the mid-7x area in 2017,” the agency said in a news release.

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