Coronavirus could pose threat to cruise ship credit ratings

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Coronavirus could pose threat to cruise ship credit ratings
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The impact on cruise companies' earnings from canceled trips, steep discoun...

) on Thursday forecast an impact of 75 cents per share on full-year adjusted earnings, citing cancellations and modification of 40 voyages in Asia and refunds to customers.

The earnings impact on both Carnival and Royal Caribbean were deemed “credit negative” by Moody’s although neither company’s credit ratings were immediately affected. “From a financial impact, Carnival would be impacted the most. They also have the most capacity in China. So they would probably see the biggest hit to earnings,” said Trombetta.

While the outbreak casts a shadow on the cruise industry in the short-term, credit analysts do not expect the effect to be lasting.

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