Moody's upgrades TUI

Moody's Investors Service said it upgraded TUI AG’s corporate family rating to B3 from Caa1 and the probability of default rating to B3-PD from Caa1-PD.

"Our decision to upgrade TUI's rating reflects both the improving market outlook for leisure travel as the majority of Europeans are already vaccinated as well as the progress the company has achieved in safeguarding liquidity, strengthening the balance sheet with additional equity and raising funds that will allow it to start paying back support packages TUI has received during the Covid crisis," said Vitali Morgovski, a Moody's assistant vice president and lead analyst for TUI, in a press release.

"The upgrade is based on the expectation that credit metrics and free cash flow generation will be improved to levels in line with the requirements for the B3 rating category over the next quarters, driven by the anticipated normalization of operations," Morgovski continued.

The outlook remains stable.

© 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.