- Language: English
- Published: November 2011
Research Update: TUI 'B-' Rating Affirmed; Off Watch On Improved Near-Term Liquidity Prospects And Shipping Turnaround; Outlook Negative Jul 10
- Published: July 2010
- Standard & Poors
Recent refinancing and shareholder loan repayments by subsidiary TUI Travel PLC have improved Germany-based conglomerate TUI AG's near-term liquidity prospects. TUI also stands to benefit from a stronger performance at shipping associate Hapag-Lloyd AG (HL). However, with only modest proceeds from asset disposals to date, substantial capital still tied up in nonperforming loans to HL, and significant short-term maturities, in our view substantial liquidity uncertainties remain. We are affirming the 'B-' corporate credit ratings on TUI and removing them from CreditWatch with negative implications. The outlook is negative, reflecting our view of TUI's likely dependence on proceeds from further asset sales to maintain adequate liquidity, notably from 2012 onward, as well as TUI's still highly leveraged financial profile and continuing...
Companies mentioned in this report are: TUI AG
Action: Outlook: 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.
SHOW LESS READ MORE >