Fitch rates Thomas Cook notes BB-/RR3

Fitch Ratings said it assigned Thomas Cook Finance 2 Ltd.'s planned €400 million senior unsecured notes due 2023 an expected senior unsecured rating of BB-(EXP)/RR3.

Proceeds are likely to be used for the early redemption of Thomas Cook Group plc's (B+/stable) notes due in 2021.

The planned notes will be unsecured, ranking pari passu to all existing and future unsecured debt of the issuer that is not subordinated to the notes.

The new bonds will be guaranteed by subsidiaries representing 97% of group EBITDAR and 94% of total assets (excluding goodwill) respectively.

Fitch said it expects slightly above-average recovery prospects for unsecured bond holders in the event of default, resulting in a BB-(EXP) rating for the planned bond.

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