GFI Prefers CCL Over RCL

According to a report released by GFI, credit markets are prefering Carnival Corporation (NYSE: CCL) risk over Royal Caribbean Cruises Ltd. (NYSE: RCL). Carnival Corporation's (CCL) 5-year CDS trade at a significant discount to Royal Caribbean's (RCL) 5-year CDS.

Both companies are forecasting revenue at similar pace, CCL 9.8% YoY, while RCL expects 14.6% YoY. CCL is expected to post modest EPS growth of 6.7% YoY, while RCL's EPS is expected to grow by 106.7% YoY.

GFI thinks that at this point in the cycle the risk/reward balance is firmly in favour of Carnival Corporation (CCL).