S&P: Carnival unaffected

Standard & Poor's said it s ratings and outlook on Carnival Corp. (A-/stable/A-2) and its affiliate, Carnival plc, are not affected by the company's announcement that it will increase its quarterly dividend 27% to $0.35 per share.

Dividends paid by Carnival in 2006 were roughly $800 million, compared with a run rate of about $1.2 billion based on this increase, assuming a stable share count, the agency said.

Despite this increase in dividends, continued softness in pricing in the Caribbean and Carnival's expectation that net revenue yields will be flat to slightly up for 2007, the company's credit measures are expected to remain in line with the ratings, S&P noted.

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