Carnival Cut to Junk by Moody’s While Cruise Suspension Drags On
- Company not investment grade for foreseeable future: Moody’s
- Carnival plans job cuts, salary reductions to preserve cash
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Carnival Corp. was cut to junk by Moody’s Investors Service amid a prolonged suspension of the cruise company’s operations because of the Covid-19 pandemic.
Moody’s assigned the company a Ba1 rating, the highest junk grade, and lowered its rating on Carnival’s senior unsecured notes by one notch to the same level. It said in a statement Monday that Carnival’s financial metrics “are not indicative of an investment-grade rating for the foreseeable future” as cruises remain suspended and any recovery is likely to be slow.