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June 23 (Reuters) \u2013 Ratings agency Standard & Poor\u2019s on Tuesday downgraded bonds of Carnival Corp to junk status, forecasting continued weak demand for the cruise industry hammered by the COVID-19 pandemic.<\/p>\n
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Standard & Poor\u2019s cut its rating on the world\u2019s biggest cruise operator\u2019s secured bonds to \u2018BB+\u2019 from \u2018BBB-\u2018, and its unsecured bonds to \u2018BB-\u2018 from \u2018BBB-\u2018. Both are now regarded as non-investment grade or junk bonds.<\/p>\n
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Carnival\u2019s overall issuer credit rating was also lowered to \u2018BB-\u2018 from \u2018BBB-\u2018. Last month, Moody\u2019s Investors Service also cut the company\u2019s rating to junk status.<\/p>\n
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Earlier in June, Carnival reported record $4.4 billion in preliminary quarterly losses after its business was crippled by the health crisis, forcing it to take major write-downs on the disposal of some docked ships.<\/p>\n
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The company, which in recent weeks fully drew down a $3 billion credit line and issued $6.6 billion in bonds and equity, has also been looking for further waivers on debt repayments due next year, without which it could breach some loan conditions.<\/p>\n
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\u201cWe forecast that the company\u2019s credit measures will remain very weak through 2021 and anticipate that its adjusted leverage may potentially exceed 10x in 2021 following a significant deterioration in its performance in 2020,\u201d S&P said in a statement.<\/p>\n
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S&P has a \u201cBB\u201d issuer credit rating, also a junk status, on Carnival rival Royal Caribbean Corp. (Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)<\/p>\n
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(c) Copyright Thomson Reuters 2020.<\/em><\/p>\n gCaptain<\/p>\n","protected":false},"excerpt":{"rendered":" June 23 (Reuters) \u2013 Ratings agency Standard & Poor\u2019s on Tuesday downgraded bonds of Carnival Corp to junk status, forecasting continued weak demand for the cruise industry hammered by the COVID-19 pandemic. Standard & Poor\u2019s cut its rating on the world\u2019s biggest cruise operator\u2019s secured bonds to \u2018BB+\u2019 from \u2018BBB-\u2018, and its unsecured bonds to …<\/p>\n","protected":false},"author":1,"featured_media":12245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[1505,1147,8088,8089,3364],"class_list":["post-12244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marine-world","tag-carnival","tag-corporation","tag-downgraded","tag-junk","tag-status"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/12244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=12244"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/12244\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/12245"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=12244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=12244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=12244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}