On November 5, 2020, S&P Global Ratings lowered its issuer credit rating on Carnival Corporation & Plc by two notches to B from BB-. The downgrade reflects the ratings agency’s forecast for credit measures and operating cash flow generation through fiscal 2021 (Carnival's fiscal year ends November 30) to be even weaker and more negative than the already anticipated very weak levels. This is because S&P Global now anticipates a more protracted return to service for the majority of the Company's fleet and significantly lower occupancy levels compared with 2019, particularly for sailings in the first half of 2021. These weaker measures, along with the potential for further suspensions of operations or delays in the resumption of operations in 2021 in response to rising virus cases translates to a greater risk that Carnival would be able to significantly improve its 2022 adjusted leverage to a more manageable level from what S&P views as unsustainable levels in 2021.

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