Moody's affirms TUI

Moody's Investors Service said it affirmed the corporate family and probability-of-default ratings of TUI AG at Caa1, along with its unsecured rating at Caa2 and subordinated ratings at Caa3.

The outlook was changed to stable from negative.

The outlook change reflects a view that the recently announced measures to refinance the Hapag-Lloyd AG shipping line also will be beneficial for the liquidity profile of TUI, Moody's said.

The recovery in the shipping market should increase the recovery prospects of TUI's exposure to Hapag-Lloyd, the agency added.

In particular, Hapag-Lloyd should be in a position to resume interest payments on its debt instruments and other liabilities to TUI AG going forward, the agency said, and TUI expects an upfront inflow of €65 million of deferred interest on these instruments, Moody's said.

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