S&P upgrades TUI

S&P said it raised its issuer ratings for TUI AG and its revolver to B from B- and removed it from CreditWatch where it was placed with positive implications on Feb. 22. The outlook is positive.

“TUI has concluded its rights issue, exceeding our expectations, with proceeds of approximately €1.8 billion. The group will use the proceeds to repay government-related obligations in the form of the nominal €420 million Silent Participation I and nominal €59 million of WSF warrant bonds in an agreed aggregate amount of €750 million (including accrued interest), and reduce drawings under the credit facilities, which stood at €562 million at fiscal year-end 2022,” the agency said in a press release.

The new outlook reflects the view TUI will shave its S&P Global Ratings-adjusted leverage to below 3x, extend its loans beyond July 2024 and generate positive FOCF after leases in fiscal 2023, the agency said.

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