Moody's May Upgrade Royal Caribbean

November 19, 1999

Moody's Investors Service placed the long term debt ratings of Royal Caribbean Cruises Ltd. on review for possible upgrade based on its improved debt protection measures, and the steady growth in earnings and cash flow as well as its reduced need for debt to fund capital expenditures following its equity issuance. Moody's review will focus on the impact of Royal's extensive ship building program on debt protection measures, the company's earnings vulnerability to an economic downturn and its sensitivity to changes in consumer spending on cruise vacations. Moody's also rated the company's $1.0 billion multiple shelf registration at (P) Baa3 and (P) "ba2" for senior unsecured debt and preferred stock respectively, and simultaneously placed these ratings on review for a possible upgrade. Ratings placed under review for possible upgrade are: Senior unsecured shelf registration at (P) Baa3. Senior unsecured debt at Baa3. Senior subordinated notes at Ba2. Preferred stock shelf registration at (P) "ba2" Preferred stock at "ba2" Ratings assigned and put on review for possible upgrade are: Senior unsecured multiple shelf registration at (P) Baa3. Preferred stock shelf registration at "ba2." Royal Caribbean Cruises, Ltd. is headquartered in Miami, Florida, and operates 17 cruise ships in the premium and contemporary market segments under the brand names, Celebrity Cruises and Royal Caribbean International, respectively. At year end 1998, the company had revenues of $2.6 billion.

Moody's May Upgrade Royal Caribbean

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