Star Cruises' 'B1' rating still on review with direction uncertain
Wednesday, December 19, 2007; Posted: 03:11 AM

MUMBAI, Dec 19, 2007 (Thomson Financial via COMTEX) -- Moody's Investors Service said it will continue to review the 'B1' corporate family rating of Star Cruises Ltd (SCL) with direction uncertain, pending the final closing of Apollo Management LP's 1 bln usd cash investment in NCL Corp Ltd (NCL) for a 50 pct equity interest.

As part of the transaction, Apollo will name a majority of the NCL board, while SCL, which will continue to own the remaining 50 pct of NCL, will retain certain consent rights, the ratings agency said. The cash proceeds of the transaction will be used to repay NCL's existing debt and fund upcoming new builds.

"Moody's will expect to confirm SCL's 'B1' corporate family rating with a stable outlook upon completion of the transaction early next year," the ratings agency said.

The confirmation reflects the cruise operator's improved key financial metrics as a result of the pro-rata consolidation - rather than full consolidation - of NCL and factors in the implied support of its major shareholders, particularly Genting Berhad (rated Baa1), Moody's said.

The final 'B1' rating reflects Moody's view of ongoing support, if necessary, for SCL from its shareholders, including Genting, through Resort World Bhd, as the company remains strategically important to the group, the ratings agency said.