Research Update: Germany-Based Tour Operator TUI Outlook Revised To Positive On Improving Financial Performance; 'B-' Rating Affirmed Nov 12
- Language: English
- Published: November 2012
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
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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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