Moody’s rates Thomas Cook notes B1

Moody's Investors Service said it assigned a B1 instrument rating to Thomas Cook Group plc's new €300 million 5˝-year senior unsecured notes as well as a B1-PD probability of default rating.

Concurrently, the agency affirmed the B1 corporate family rating.

The outlook remains stable.

"We have affirmed the B1 corporate family rating with a stable outlook despite Thomas Cook's lower operating profitability in FY09/2016 when assessed on a like-for-like. In our view, Thomas Cook's performance was relatively resilient as the company was able to offset most of the adverse effects caused by terrorist attacks and other external events," Sven Reinke, Moody's vice president, senior credit officer and lead analyst for Thomas Cook, said in a news release.

"The assignment of the B1 rating to the senior unsecured notes reflects the pari passu position of the new notes with the vast majority of the company's debt which limits subordination to the small amount of secured debt in the capital structure."

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