S&P revises TUI to stable

Standard & Poor's said that it revised its outlook on TUI AG to stable from negative and affirmed its B- long-term corporate credit, B- senior debt, CCC- junior subordinated debt, 4 senior debt recovery rating and 6 junior subordinated debt recovery rating.

The outlook revision reflects the view that improved conditions in the shipping business and recent financing measures by the company and its subsidiaries and associates have improved TUI's near-term liquidity position, S&P said.

The ratings reflect the view of TUI's holding company status, highly leveraged financial risk profile, short-term debt maturities, reliance on ongoing refinancing and asset streamlining measures, ongoing significant exposure to noncore shipping associate HL, and complex structure and cash flow leakage to minorities, the agency said.

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