Royal Caribbean Cruises Ltd (RCL - Get Report) CFO Jason Liberty set a goal for the company three years ago to be upgraded to an investment grade credit rating, and he got his wish this summer, the Wall Street Journal reported.
Royal Caribbean was one of several non-commodity sector firms to snag a credit rating upgrade this year. $1.1 billion worth of Royal Caribbean bonds transitioned to Bank of America's (BAC - Get Report) investment grade index from its high-yield bond index in May, according to the bank.
The shift from Bank of America came after Royal Caribbean was upgraded at Moody's Investors Services in April and S&P Credit Ratings in May. Royal Caribbean has become more aggressive in enacting its "course corrections" and fixing financing problems when they arise instead of putting them off.
Royal Caribbean's upgraded credit rating means the company can now borrow from the commercial paper market, where rates are lower than on bank revolvers. "We will be looking at opportunistically taking advantage of that," Liberty said.
Royal Caribbean stock traded up premarket.
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