Ratings published by independent rating agencies are a key prerequisite for efficient and flexible access to the capital market. They assist debt capital market investors in evaluating the risk situation of companies and their financial instruments.
|Corporate Rating||Standard & Poor's||Moody's|
Latest Update Standard & Poor's
April 2019 – Standard & Poor's confirms its long-term corporate credit rating "BB" on TUI and revised their Outlook to “negative”.
The outlook revision reflects the lowering of our earnings expectations following Tui's profit warning on March 29, 2019, and associated uncertainty. This stems from the unclear duration of the grounding of the Boeing 737 Max 8 jets and the challenging market conditions in the tour operator industry.
Latest Update Moody's
April 2019 – Moody’s changes outlook on TUI AG’s corporate family rating from stable to negative.
TUI's rating reflects the company's leading market position as the largest tourism company in the world. TUI continues to adapt its business model away from a classic tour operator to an integrated provider of holiday experiences. Its earnings benefit from the reinvestments of €2 billion asset disposals into new hotels and cruise ships, diversifying TUI's portfolio and making it less cyclical and seasonal. Though the long-term prospects for the travel industry remain favourable, the near-term market outlook is becoming increasingly challenging and is prone to disruptions, underpinned by TUI's two profit warnings in 2019. While the group's good overall liquidity position helps in dealing with headwinds, it will become weaker this year dragged down by one-off cost associated with recently announced grounding of Boeing 737 MAX 8.
Moody's expects a material deterioration in TUI's credit metrics in the coming 12-18 months due to the downward trend of TUI's operating performance given the market challenges, increasing macroeconomic uncertainties and the negative cost impact of Boeing 737 MAX 8 grounding. Moreover, there is a considerable uncertainty on the full impact of duraction of the above-mentioned effects, which is reflected in the negative rating outlook.