Moody's lowers TUI

Moody's Investors Service said it has lowered the corporate family rating and probability of default rating of TUI AG to Caa1 from B3.

At the same time, the unsecured rating and the subordinated rating are lowered from Caa1 to Caa2 and from Caa2 to Caa3, respectively, the agency said.

This concludes the review that was initiated on July 28, the agency noted.

The outlook is negative.

According to Moody's, the rating action reflects its view that the liquidity at TUI will be significantly strained over the coming 12-18 months due to the requirement for additional financial support for its recently divested Hapag-Lloyd division, in which it retains a 43.3% stake, as well as the very weak financial position of that entity.

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