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RCCL Can't pay for Oasis?


Tricia28

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Interesting article from USA today. RCCL will have trouble paying for the Oasis.

Scary times for RCCL as a company. It will to continue to affect everything from corporate (lost jobs) on down to the ships themselves (lost jobs, quality of food, additional charges for on board amenities etc.)

 

http://www.usatoday.com/travel/cruises/item.aspx?type=blog&ak=63337569.blog

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It's not that they CAN'T pay for Oasis.. it is just that they have not secured all of the financing required. I believe they will find it, and all will be ok.

 

This was all reported the other day, after they filed their 10-K with the SEC.

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And since this was in Carnivals 10-k you could say the same thing about them:

 

Our future operating cash flow may not be sufficient to fund future obligations, and we may not be able to obtain financing, if necessary, in sufficient amounts and on terms that are favorable or consistent with our expectations. In addition, our counterparties’ ability to perform may adversely impact us.

 

Our forecasted cash flow from future operations may be adversely affected by various factors, including, but not limited to, declines in guest demand, increased competition, overcapacity, the deterioration in general economic and business conditions, liquidity and other issues in the global debt and equity markets, terrorist and pirate attacks and the threats thereof, ship accidents and other incidents, adverse publicity, the impact of changes in, or disruptions to, the global credit markets on our financing costs and counterparty credit and performance risks, and increases in fuel prices, as well as other factors noted under these “Risk Factors” and under the “Cautionary Note Concerning Factors That May Affect Future Results” section below. To the extent that we are required, or choose, to fund future cash requirements, including current and future shipbuilding commitments, from sources other than cash flow from operations, available cash and current external sources of liquidity, including committed ship financings, we will have to secure such financing from banks or through the offering of debt and/or equity securities in the public or private markets or take other actions, such as our recently announced suspension of dividend payments. There is no guarantee that such financings will be available in the future to fund our future obligations.

Our access to, and the cost of, financing will depend on, among other things, the maintenance of our strong long-term credit ratings and the availability of sufficient amounts of financing. Carnival Corporation and Carnival plc’s senior, unsecured long-term debt ratings are “A-” by Standard & Poor’s and “A3” by Moody’s. Carnival Corporation’s and Carnival plc’s short-term corporate credit ratings are “A-2” by Standard & Poor’s and “P-2” by Moody’s. Our Standard & Poor’s A- debt rating recently was assigned a negative outlook, which reflects their concern that the weakened state of the economy and pull back in consumer spending will pressure our ability to sustain our A- debt rating. If we were to be downgraded by S&P to BBB+, this would result in a slight increase in our borrowing costs on a prospective basis, and this could have an impact on our ability to obtain committed credit facilities or issue debt. Similarly the ability of our counterparties, primarily associated with our cash equivalents, committed financing facilities, contingent obligations, derivative instruments, insurance contracts and new ship progress payment guarantees, to perform may adversely impact us if any of their financial positions weaken materially or they suffer other financial disruptions.

 

 

 

Both are very large but there's some interesting stuff in both.

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Interesting article from USA today. RCCL will have trouble paying for the Oasis.

Scary times for RCCL as a company. It will to continue to affect everything from corporate (lost jobs) on down to the ships themselves (lost jobs, quality of food, additional charges for on board amenities etc.)

 

http://www.usatoday.com/travel/cruises/item.aspx?type=blog&ak=63337569.blog

 

 

Wow..........there is another thread that is almost identical to this one.

 

As others have said..........And Negative headlines sell papers.......that what you read is not necessarily true.:rolleyes:

 

Check out http://boards.cruisecritic.com/showthread.php?t=935795

 

 

Rick

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OK...this worrying about the state of the Oasis needs to stop right now. People need to understand what a 10-K is. A company is REQUIRED to list ALL possible things that COULD affect the bottom line of a stock. Some companies list things as: possible fires, thefts, etc. in the 10-K.

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This is typical "news organization trying to make a story" stuff. The RCI 10-K also listed pirate attacks and hurricanes that could impact the bottom line. You should all go look up and read 10-K's from some major companies and see the crazy stuff they list as "problems affecting the bottom line". It's hilarious stuff !!

 

Relax and enjoy all your future RCI cruises :)

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Boy, got to give a hand to sensationalism here. This is just a 10K report from October 2008 people. They have to disclose everything that might happen. Its kind of like side effects for meds. They have to tell you everything that might happen, not neccessarily that it will. Oasis will be fine. Allure might go to the back burneer, but it goes to show, "chicken little" at its finest......

 

 

It is a disclosure, that is all. Must have been a slow news day....:rolleyes:

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Boy, got to give a hand to sensationalism here. This is just a 10K report from October 2008 people. They have to disclose everything that might happen. Its kind of like side effects for meds. They have to tell you everything that might happen, not neccessarily that it will. Oasis will be fine. Allure might go to the back burneer, but it goes to show, "chicken little" at its finest......

 

 

It is a disclosure, that is all. Must have been a slow news day....:rolleyes:

 

Very well said :):):)

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Interesting article from USA today. RCCL will have trouble paying for the Oasis.

Scary times for RCCL as a company. It will to continue to affect everything from corporate (lost jobs) on down to the ships themselves (lost jobs, quality of food, additional charges for on board amenities etc.)

 

http://www.usatoday.com/travel/cruises/item.aspx?type=blog&ak=63337569.blog

 

RCL has said they do not expect to have difficulty financing the ship; the article is merely sensationalistic journalism; writing about an unlikely worst case scenario as though it were imminent.

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