Fitch changes Thomas Cook view to negative

Fitch Ratings said it revised the outlook on Thomas Cook Group plc's long-term issuer default rating to negative from stable and affirmed the issuer default rating at B+.

The agency said the outlook reflects Thomas Cook’s recently announced EBIT profit warning and a setback to Fitch’s expectations of a return of the EBIT margin and funds from operations coverage ratios to within guidance for the B+ rating by 2019 to 2020.

The operating weakness in financial year to September 2018 has been mainly driven by the exceptionally hot weather in the summer of 2018 and hence delayed bookings by customers, with consequent heavy discounts for package holidays, Fitch said.

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