Moody’s revises TUI to positive

Moody's Investors Service said it affirmed TUI AG’s Ba2 corporate family rating, Ba2-PD probability of default rating and Ba2 senior unsecured rating and changed the outlook to positive from stable.

“Our decision to change the outlook to positive reflects the company's strong operating performance in fiscal year 2017 (to September) and its continued resilience to geopolitical events. Company's current liquidity and credit metrics benefitted from the disposal of non-core businesses (Travelopia, Hotelbeds and the shareholding in Hapag-Lloyd AG for €2 billion in total),” Vitali Morgovski, Moody's assistant vice president, analyst and lead analyst for TUI, said in a news release.

“The group's credit profile will also benefit from the intended reinvestment of proceeds into core hotel and cruise business aiming to diversify the portfolio and enhance the group's earnings potential.”

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