UPDATE: Charles Stanley Downgrades Carnival to Hold

Charles Stanley lowers its rating on Carnival (NYSE: CUK) to Hold as the Costa Concordia is expected to have material financial impacts on the company in 2012 and beyond.

Charles Stanley notes, "The company estimates that costs directly related to the accident are likely to reduce net income by between $155m and $175m (c.9%) in 2012. The greater concern, however, is the effect of the incident on net revenue yields, which at this stage is very hard to predict. It seems almost inevitable, that the net revenue yield outcome for the full year is now likely to be significantly weaker than previously anticipated. In the longer term, the accident raises the possibility of tighter regulation of the industry and more stringent safety standards, the implementation of which may have significant associated costs."

CUK closed at $31.65 a share yesterday.