Moody's upgrades TUI, debt

Moody's Investors Service said it upgraded TUI AG's corporate family rating to B2 from B3 the probability of default rating to B2-PD from B3-PD.

Concurrently, the agency raised TUI AG's senior unsecured rating and the junior subordinated ratings to B3 from Caa1, and to Caa1 from Caa2, respectively.

The outlook was changed to stable from positive.

"Today's rating action reflects our view that TUI AG's stable earnings profile, largely underpinned by the TUI Travel PLC subsidiary, has enabled the group to retain its key leverage metric, as adjusted by Moody's, close to 6x, which is within the target range that we had indicated for a potential upgrade,'' Richard Morawetz, Moody's vice president, senior credit officer and lead analyst for TUI AG, said in a news release.

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