S&P cuts TUI

Standard & Poor's said it lowered its long-term corporate credit rating on TUI AG to BB from BB+, owing to its weakening operating results.

The outlook is negative.

The agency said that the rating action reflects the deterioration of the group's earnings, attested by weak quarterly results and its expectations that TUI will not achieve the minimum financial measures commensurate with a BB+ rating of adjusted funds from operations to net debt of at least 25% over the next few years.

The ratings on TUI reflect the group's exposure to the cyclical and competitive European tourism and global container shipping markets, the agency said, noting that both markets are characterized by high volatility, driven by changing underlying market dynamics and external factor risk.

© 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.