S&P Upgrades Viking Cruises Rating to 'BB' Amid Strong Performance and Debt Reduction Expectations

image

S&P Upgrades Viking Cruises Rating to 'BB' Amid Strong Performance and Debt Reduction Expectations

S&P Global Ratings has upgraded the credit rating of Viking Cruises Ltd., a river and ocean cruise operator, from 'BB-' to 'BB'. This upgrade reflects the company's strong performance and anticipated debt reduction, while Viking Cruises maintains a stable outlook.

As of February 23, 2025, Viking Cruises has sold approximately 88% of its 2025 capacity. The company's forward booking position and high pricing provide a clear view of expected revenues and cash flows. Revenue, EBITDA, and cash flow are projected to continue rising, with the leverage ratio expected to improve from around 2.6x at the end of 2024 to the mid-1x levels this year. S&P Global Ratings has also raised the ratings on Viking's secured and unsecured debt by one notch, indicating confidence in the company's future growth and financial stability.