S&P Global Ratings raised all of its ratings, including its issuer credit rating and unsecured debt ratings for Royal Caribbean (RCL), to ‘BBB-‘ from ‘BB+’. The outlook is stable, reflecting the expectation that Royal Caribbean’s forward bookings and moderate yield growth in 2025 will support continued cash flow growth and drive FFO to debt to about 27%, leverage to around 3x, and EBITDA coverage of interest to about 5.5x this year. S&P said: “Global cruise operator Royal Caribbean Ltd. reported good forward bookings for 2025 at higher prices. We believe Royal has sold more than two-thirds of its capacity for 2025, which provides good forward revenue and cash flow visibility, and will support continued and sustained credit measure improvement.”
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