S&P downgrades Thomas Cook

S&P said it lowered Thomas Cook Group plc's long-term issuer credit and issue-level ratings to CCC+ from B-.

Thomas Cook recently reported interim results with underlying profitability materially weaker than previously expected, S&P explained.

This was due to the continued soft trading conditions for the tour operators, the agency said.

In light of weak trading, material cash outflows and high leverage, S&P said it believes the group's ability to keep meeting its financial commitments in the medium term will be challenged and depend on favorable business, financial and economic conditions outside of its control.

This is despite agreeing to a new short-term facility that should provide some temporary liquidity headroom, the agency said.

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