Star Cruises confirmed at 'B1' after Apollo Management buys into unit - Moody's

MUMBAI (Thomson Financial) - Moody's Investors Service confirmed the 'B1' corporate family rating of Star Cruises Ltd (SCL) with a stable outlook, after private equity group Apollo Management LP completed the investment of 1 bln usd cash for a 50 pct stake in SCL unit, NCL Corp Ltd (NCL). SCL will continue to own the remaining 50 pct stake.

'The confirmation reflects SCL's improved key financial metrics as a result of the pro-rata consolidation -- rather than full consolidation -- of NCL and, at the same time, factors in the implied support of its major shareholders, particularly Genting Berhad,' Moody's said.

The agency added that the rating is unlikely to be upgraded over the medium term in view of SCL's modest financial profile and the high execution and development risks associated with the Macau project, where SCL is diversifying into gaming.

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