Moody's assigns TUI, notes Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating and a Ba2 long-term senior unsecured rating to TUI Aktiengesellschaft while also assigning Ba2 ratings to two TUI bond issues: the €400 million senior unsecured bond due August 2009 and the €625 million senior unsecured bond maturing May 2011.

The outlook is stable.

Moody's noted TUI's Ba2 ratings reflect the company's leading market position in the tourism industry in Europe.

According to Moody's, the group has been successfully positioning itself as a global provider with a presence in all market segments, from low-budget to premium tours, adopting a strategy of strong vertical integration.

The rating also factors in TUI's strategy to materially control only a proportion of the hotels and aircraft required to meet the needs of its tour operating services, with any additional capacity covered by entering into flexible arrangements with third-party suppliers, Moody's noted.

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