Taken from the Princess forum :
Bloomberg issued a warning about the rising cost of debt and questioned Carnival's ability to meet its interest payments -- a note that sent the stock falling.
Also, Morgan Stanley on Wednesday issued its own warning about Carnival's debt load.
Unsurprisingly, Carnival stock fell in response. Morgan Stanley cited weak sales, growing economic risks, and the rising cost of interest on debt as the three biggest risks to Carnival.
The Morgan Stanley further warned that investors can expect Carnival will require more cash to tide it over until conditions improve in the cruise industry. Increase in bookings for the next 2 quarters would help ease the pain. MS stated if things don’t improve expect Carnival to raise cash by issuing more stock. Last quarter, Carnival reported operating losses of over $1.0 billion and negative free cash flow of $1.0 billion. As such, Carnival wasn't generating any of the cash needed to pay its $368 million in interest costs and had to go further into debt.
Macrotends.com reported on Carnival the following --
Quarter ending February 28, 2022 was $29.887B, a 12.69% increase year-over-year.
Carnival long term debt for 2021 was $28.509B, a 28.83% increase from 2020.
Carnival long term debt for 2020 was $22.13B, a 128.73% increase from 2019.
Carnival long term debt for 2019 was $9.675B, a 22.51% increase from 2018.