Moody's Investors Service has downgraded the corporate family debt rating of NCL Corp., operator of interisland cruises and other cruise lines, based on projections that it will continue to borrow to finance new ships.

The debt rating was lowered to B2 from B1, with a stable ratings outlook.

Moody's said there could be pressure to lower NCL's rating further if: the Hawai'i operations continue to underperform; evidence emerges that parent company Star Cruises is no longer willing to support NCL; or if further acquisitions result in an increase in the company's debt load.

NCL yesterday announced the closing of a $1 billion cash investment from Apollo Management LP, giving it a 50 percent stake. Star Cruises owns the remainder of the cruise line.

"The downgrade of the corporate family rating reflects Moody's view that the level of support provided to NCL from SCL (Star Cruises) will decline due to the fall in SCL's ownership level and its loss of board control," said Moody's analyst Kaven Tsang in a press statement.

But he added Apollo's investment had an upside also.

"Apollo's fresh capital injection into NCL will improve its financial and liquidity profiles. The equity fund's participation in management is also expected to enhance NCL's business operation and corporate governance practices."

In its most recent financial results, NCL reported a loss of $8.6 million on revenues of $631.4 million for the quarter ended Sept. 30. The results compared with a $49 million net profit a year earlier on revenue of $597.5 million.

NCL plans to pull the Pride of Hawai'i from interisland service next month, rename it the Norwegian Jade and send it to Europe.