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
The ratings on German tour operator TUI AG reflect Standard & Poor's Ratings Services' view of its highly leveraged financial risk profile, significant debt maturities over the next 12 to 18 months compared with its capacity to generate cash, and its large minority position in its 35% owned (56% voting control) and fully consolidated key subsidiary TUI Travel PLC. The ratings also reflect our view of TUI's weak business risk profile, owing to the seasonality and cyclicality of tourism, which faces ongoing margin pressures, threats to discretionary consumer spending in some markets, and high event risks. TUI's market-leading position in European tourism and geographically well diversified sales only partly offset these weaknesses, in our view. TUI now consolidates its 38%...
Companies mentioned in this report are: TUI AG,Hapag-Lloyd Holding AG
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TUI AG,Hapag-Lloyd Holding AG