Standard and Poor's Downgrades Celebrity

[Coco Creek]

http://www.forbes.com/2008/04/03/royal-caribbean-closer-markets-equity-cx_mp_0403markets35.html?partner=yahootix

 

Royal Caribbean's (Celebrity's parent) debt sinks into junk bond territory. Could this impact the ambitious building programs of Royal Caribbean and Celebrity?

[Shirley and Les]

http://www.forbes.com/2008/04/03/royal-caribbean-closer-markets-equity-cx_mp_0403markets35.html?partner=yahootix

 

Royal Caribbean's (Celebrity's parent) debt sinks into junk bond territory. Could this impact the ambitious building programs of Royal Caribbean and Celebrity?

After reading the article, I think changing the second sentence in your post to read "Royal Caribbean's and Celebrity's ambitious building programs impacted the rating." would about sum it up. ;) The number of new ships along with the current value of the US$ compared to other currencies, huge debts to overseas shipbuilders has to have an adverse impact on the company's financial ratings.

Les

[c-legs]

Good evening,

As well, reading this thru, we find that the fundamentals at RCL are still sound, the company and most of its brands are still well managed,;; besides, the total indebtness is still cushioned against quite a strong balance sheet and highly valuable hard assets ( its ships ).

Everything these days has to re-examined with added dose of healthy caution....thus ensuring rational conclusions.

 

Happy sailings

 

My stock is safe; just got my dividends

 

Cheers

:)

[Coco Creek]

Good evening,

As well, reading this thru, we find that the fundamentals at RCL are still sound, the company and most of its brands are still well managed,;; besides, the total indebtness is still cushioned against quite a strong balance sheet and highly valuable hard assets ( its ships ).

Everything these days has to re-examined with added dose of healthy caution....thus ensuring rational conclusions.

 

Happy sailings

 

My stock is safe; just got my dividends

 

Cheers

:)

 

Well stated c-legs. Nevertheless, interest rates to do business will now go up for RCL and with a lower credit rating, the costs of money (interest) will rise to build the two Genesis ships and the four Solstice Class ships. I think it is reasonable to ask whether this building program may be cut back because of the increased costs.

[c-legs]

Well stated c-legs. Nevertheless, interest rates to do business will now go up for RCL and with a lower credit rating, the costs of money (interest) will rise to build the two Genesis ships and the four Solstice Class ships. I think it is reasonable to ask whether this building program may be cut back because of the increased costs.

Hi,

With a contractual building program scheduled the way it has to be, I doubt RCL would actually ''cancel'' one of the 6 newbuilds you are referring to, lest they're willing to face stiff penalties. A more likely scenario would ( and probably will, per the circumstances you very well explained) be a ''deferral'' of the second Genesis and the 4th Solstice: both might be already scheduled for hard & soft material, and a building schedule and slot already determined, but it's still well ahead in the process so as to allow a penalty-free deferral.

Cost cutting measures and some logically expected pressure on rates will also be called for.

Such circumstances as we're talking about now are where the ''men'' in management are quickly sorted out from the ''boys''.

We shall see.

I ain't frettin' !!

 

Cheers

:cool: