Moody's Rates Princess Cruises Bonds

Wednesday, August 02, 2000
Moody's Investors Service today assigned a Baa1 rating to the proposed $500 million bonds of P&O Princess Cruises plc, a new company to be formed by the planned de-merger of the Princess Cruise business from the Peninsular and Oriental Steam Navigation Company in the fourth quarter of 2000. The rating outlook for P&O Princess is stable. Holders of existing P&O bonds will be offered the ability to exchange their securities for the proposed P&O Princess bonds. According to P&O, bondholders who do not agree to the exchange will no longer benefit from cash flows and asset of P&O Princess' cruise business.

In a related action, Moody's downgraded to Baa1 from A3 its rating for the outstanding notes of P&O and left this rating under review for possible further downgrade. The Baa1 rating assigned to the debt of P&O Princess is based on the company's strong market position and brand recognition in the cruise industry and its international diversification strategy.

It also reflects the potential for further growth due to shifts in demographic patterns favorable to the cruise line industry. The rating also reflects the expectation that without the stabilizing effects of the logistics and real estate businesses the company will be more exposed to potential downturns caused by over-capacity in the competitive and capital-intensive cruise industry.

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


R-22 Phase-out Presents Dangers and Expense -WSS

The shipping industry is facing price, supply and safety risks in the run-up to the global ban on R-22 (chlorodifluoromethane or HCFC) refrigerant, warns Wilhelmsen Ships Service,

U.S. Ups Philippines Aid as South China Sea Turmoil Builds

The United States has raised its military aid to the Philippines this year to $79 million, the U.S. ambassador said on Wednesday, as tension rises in the region

Asia Fuel Oil-Cracks, Spreads Tight; Bunker Prices Climb

Asia's fuel oil crack for benchmark 180-centistroke rebounded to a discount of $6.79 a barrel on Wednesday, gaining as bunker prices firmed on the possibility of

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0572 sec (17 req/sec)