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Bulletin: TUI AG Ratings Unaffected By Equity-Linked Financing In Shares Of TUI Travel PLC Jan 08
Standard & Poors, Jan 2008
Abstract
PARIS (Standard & Poor's) Jan. 10, 2008--Standard & Poor's Ratings Services said today its corporate credit rating on TUI AG (BB-/Negative/--) is unaffected by the launch of a -450 million equity-linked financing, backed by the sale of part of TUI AG's shareholding in its largest subsidiary TUI Travel PLC (not rated). The transaction involves a reduction in TUI AG's shareholding to about 40% from 51%. TUI Travel will, however, continue to be fully consolidated from an accounting perspective as TUI AG will retain 51% of voting rights. Subsequently, TUI Travel will be able to raise debt on a stand-alone basis. From a TUI AG bond investor perspective, this translates into weaker protection as potential indebtedness at the TUI Travel level...
Companies mentioned in this report are: TUI AG
Action: Bulletin
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.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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