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Carnival Lifted to IG-Status at BBB- by Fitch
October 2, 2025
Carnival and its senior unsecured debt were upgraded by a notch from to BBB- from BB+ by Fitch. This follows the refinancing of Carnival’s 6% 2029s, which removed covenants affecting guarantees, while EBITDA leverage remains low and is expected to improve, as per Fitch. Carnival announced historically high bookings for 2025–2026 and Fitch forecasts net yield growth of ~5%. Carnival’s gross debt is projected to decline from $35.6bn in 2022 to $27bn in 2025, aided by fewer new ship deliveries and the settlement of $1.1bn in convertible notes. Free cash flow is expected to grow to $1.6bn in 2025, supported by EBITDA growth, lower interest costs, and reduced capex. As the world’s largest cruise operator, Carnival benefits from scale, strong brand acceptance, and favorable industry dynamics, including high barriers to entry, mobile assets, and tax advantages, Fitch added.
Carnival’s bonds traded stable with its 5.75% 2030s at 101.4, yielding 5.29%.
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