Moody's downgrades TUI

Moody's Investors Service said it downgraded the corporate family rating of TUI AG to B2 from Ba3. Concurrently, the senior unsecured rating was downgraded to B2 from Ba3 and the probability of default rating was downgraded to B2-PD from Ba3-PD. Moody's also placed the company's ratings on review for further downgrade.

“Our decision to downgrade TUI's ratings reflects the company's announcement of the temporary suspension of the vast majority of TUI's operations until further notice due to the unprecedented spread of the coronavirus (Covid-19). We expect this will significantly impact TUI's earnings in fiscal 2020 and its cash outflow will be much higher than previously anticipated,” said Vitali Morgovski, a Moody's assistant vice president, analyst and lead analyst for TUI, in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.