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Research Update: TUI AG On CreditWatch Negative On Plan To Merge Tourism Business With First Choice Mar 07 Product Image

Research Update: TUI AG On CreditWatch Negative On Plan To Merge Tourism Business With First Choice Mar 07

  • ID: 1885252
  • March 2007
  • Standard & Poors

Abstract
On March 19, 2007, Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating and related issue ratings on Germany-based tourism and shipping group TUI AG (TUI) on CreditWatch with negative implications. This follows the announced merger of its tour operator business with U.K.-based tour operator First Choice Holidays PLC (First Choice), which will increase the group's exposure to the highly volatile travel industry. It also reflects publication of TUI's full-year 2006 financial results, which are below par for the current ratings. The announced merger is subject to the approval of EU antitrust authorities and First Choice shareholders, and is expected to be closed later in the year. We consider that the transaction will increase the group's exposure...

Companies mentioned in this report are: TUI AG
Action: On CreditWatch:Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

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TUI AG

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