Moody’s rates Hurtigruten bond B2

Moody’s Investors Service said it assigned a B2 rating to the proposed €300 million senior secured note due 2025 currently being marketed by Explorer II AS, an indirect subsidiary of Hurtigruten Group AS, the owner of Norwegian cruise operator Hurtigruten AS.

The proposed note is being issued to refinance the €260 million export credit facilities Hurtigruten used to acquire two newbuild vessels, MS Roald Amundsen and MS Fridjtof Nansen.

“Today’s rating action reflects Hurtigruten’s positive earnings trajectory driven by strong bookings that provide revenue visibility and underpinned by supportive macro fundamentals. As of 14 January 2020, 60% of Hurtigruten’s 2020 budgeted revenue was booked including 76% of revenue budgeted for MS Roald Amundsen and MS Fridjtof Nansen. This strong booking pattern reflects long lead times for cruise booking, as well as overall growth in customer demand for unique, adventurous and environmentally and socially sustainable travel,” said Moody’s in a press release.

Moody’s also affirmed the corporate family rating of Hurtigruten Group AS at B2 and its probability of default rating at B2-PD. Concurrently, the rating agency affirmed the B2 ratings assigned to the company’s senior secured bank facilities, consisting of a €655 million term loan B due 2025 and an €85 million revolving credit facility due 2024. The outlook is negative.

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