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Carnival Becomes Latest Fallen Angel While Covid Halts Cruises

  • S&P slashed company’s credit rating by three levels to BB-
  • Tuesday’s move follows Moody’s cutting company to junk in May
CDC's 'No Sail Order' For Cruise Ships Extended By 100 More Days
Photographer: Tim Rue/Bloomberg
Updated on

Carnival Corp. is the latest cruise line to lose its investment-grade credit ratings after S&P Global Ratings downgraded the company Tuesday.

S&P slashed the company’s long-term rating by three levels to BB-, from BBB-, saying the cruise line’s credit metrics are likely “to remain very weak through at least 2021” as it begins to slowly resume its operations. The cut from S&P hands the company a second high-yield credit rating, meaning its debt will leave investment-grade credit indexes.