France Buys into STX Europe
The French Republic became a 33.34 percent shareholder in STX France and its shipyards in Saint-Nazaire and Lorient. STX Europe is a builder of cruise ships and ferries, with a market share of 35 - 40 percent. The company builds cruise ships at its yards in France and Finland. The French yards also have experience with navy vessels. Other shipyards in STX Europe are build specialized offshore vessels. The new agreement between STX Europe and the French Republic is a realization of the memorandum of understanding announced by the two parties on June 12, 2008. The French Republic will acquire the 33.34 percent interest in STX France via an equity investment of $139.7m which is expected to be made on November 7, 2008.
S&P Lowers Cruise Ratings
Standard & Poor's lowered its ratings on the class A and B notes issued by Cruise Ship Finance Ltd. to triple-'B'-minus from triple-'B' and removed the ratings from CreditWatch with negative implications, where they had been placed on Jan. 25, 2001. The rating action reflects Standard & Poor's Jan. 22, 2001 downgrade of Royal Caribbean Cruises Ltd.'s (RCL) corporate rating to triple-'B'-minus from triple-'B'. As the underlying obligor on the receivables held by Cruise Ship, RCL is a supporting rating to the transaction. In its analysis of the consequences of RCL's downgrade, Standard & Poor's took into consideration the fact that in a situation where RCL is in default, Cruise Ship's noteholders have access to the sale proceeds of the ships that are the object of the receivables on RCL.
