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TUI AG 'BB-' Ratings And Debt Remain On Watch Neg On Proposed Sale of Container Shipping Unit Oct 08
Standard & Poors, October 2008
LONDON (Standard & Poor's) Oct. 22, 2008--Standard & Poor's Ratings Services said today that its 'BB-' long-term corporate credit ratings and all issue ratings on Germany-based tourism and shipping group TUI AG remain on CreditWatch with negative implications, where they were originally placed on March 19, 2008. This follows the announcement of the proposed sale of TUI's container shipping unit Hapag-Lloyd AG (HL) on Oct. 13, 2008. "The sale of Hapag-Lloyd will reduce TUI's capital intensity, but the group's overall business risk profile will weaken as a result of greater reliance on its cyclical and relatively low-margin tourism businesses," said Standard & Poor's credit analyst Philip Temme. "These units are currently strongly exposed to headwinds from economic weakness in TUI's...
Companies mentioned in this report are: TUI AG
Action: CreditWatch Update
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.