Moody's Revises Carnvial Rating Outlook

Thursday, October 04, 2001
Moody's Investors Service confirmed the A2 senior ratings of Carnival Corporation, but changed the rating outlook to negative reflecting the uncertain economic and industry conditions that the company faces in the wake of the attacks on the U.S. on September 11.

While Carnival's financial flexibility is strong, its ratings could come under pressure if significant and sustained consumer reluctance to take cruises results in a substantial drop in yield and cash flow from operations.

Moody's notes that Carnival currently maintains a large cash balance of $1.2 billion at 8/31/01.

This cash balance together with future earnings should enable the company to finance its shipbuilding program without having to increase debt levels.

Moody's believes the events of September 11th will further stress industry conditions that were already suffering from price weakness due to economic softness and capacity expansion within the industry.

Although the company's business conditions are improving day by day since the attack, the longer term impact on leisure travel patterns is still unknown.

The negative consequences of industry-wide capacity expansion may be softened somewhat by the exit of marginal cruise operators, evidenced by the recent bankruptcy filing by Renaissance.

The negative rating outlook captures the risk of significant deterioration in pricing and in the volume of travel in the context of a high fixed cost business.

Moody's expects Carnival to continue its focus on cost reduction and cash conservation in light of industry conditions.

Maritime Today


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

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Delia Succeeds Schmidt as Ohmsett Program Manager

MAR Incorporated has named John Delia the Program manager for Ohmsett – The National Oil Spill Response Research & Renewable Energy Test Facility, succeeding Bill Schmidt who retired in December 2015.

SBM Offshore: US Authorities Reopen Corruption Probe

SBM Offshore, the world's top oil production ship leasing company, said on Wednesday that U.S. authorities had re-opened an inquiry into bribery allegations involving the Dutch company.

The Next Generation of Hull Performance Management

Hull performance monitoring solutions can offer significant fuel savings potential, a fact that is prompting growing interest from the maritime industry. To spur

Finance

Funding Secured for Project to Deepen the Delaware River

Dennis Rochford, president of the Maritime Exchange for the Delaware River and Bay, announced that President Obama’s FY17 proposed budget includes $33 million for the Delaware River Deepening Project.

Top 10 Shipowning Nations by Value

VesselsValue has provided a list ranking the top shipowning nations by value, including the percentage change difference against 2015 figures. Although the

Port of Hamburg Reports Bulk Cargo Jump in 2015

The Port of Hamburg reports higher bulk cargo throughput and strong growth in rail and inland waterway seaport-hinterland traffic in 2015 – downturn in container handling.

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar Winch
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: 0.0944 sec (11 req/sec)