Carnival Credit Rating Boosted by S&P
Carnival Corporation, the world’s largest cruise operator, has seen its credit rating boosted by S&P Global Ratings after the company reported strong quarterly results. The rating agency upgraded Carnival’s long-term corporate credit rating from ‘BB+’ to ‘BBB-’, citing the company’s improved financial performance and outlook.
Carnival’s Financial Performance
Carnival reported a net income of $1.2 billion for the third quarter of 2023, up from a net loss of $2.2 billion in the same period a year earlier. The company’s revenue also rose to $4.3 billion, up from $3.2 billion in the same period in 2022. The strong performance was driven by a rebound in demand for cruises, as well as cost-cutting measures implemented by the company.
S&P’s Upgrade
S&P Global Ratings upgraded Carnival’s long-term corporate credit rating from ‘BB+’ to ‘BBB-’, citing the company’s improved financial performance and outlook. The rating agency noted that Carnival’s strong performance was driven by a rebound in demand for cruises, as well as cost-cutting measures implemented by the company.
The rating agency also noted that Carnival’s liquidity position had improved significantly, with the company having access to $9.2 billion in cash and available credit facilities. S&P also noted that Carnival’s debt levels had decreased significantly, with the company’s total debt-to-EBITDA ratio falling to 4.2x from 5.3x in the prior year.
Carnival’s Outlook
Carnival’s outlook remains positive, with the company expecting to return to profitability in 2024. The company is also expecting to benefit from the continued recovery in demand for cruises, as well as from its cost-cutting measures.
Carnival is also expecting to benefit from the launch of its new ships, which are expected to be more fuel-efficient and environmentally friendly. The company is also expecting to benefit from its new loyalty program, which is expected to drive more repeat customers.
Conclusion
Carnival Corporation has seen its credit rating boosted by S&P Global Ratings after the company reported strong quarterly results. The rating agency upgraded Carnival’s long-term corporate credit rating from ‘BB+’ to ‘BBB-’, citing the company’s improved financial performance and outlook. The company’s outlook remains positive, with the company expecting to return to profitability in 2024. Carnival is also expecting to benefit from the launch of its new ships, its new loyalty program, and the continued recovery in demand for cruises.