Moody’s upgrades TUI, debt

Moody's Investors Service said it upgraded TUI AG’s corporate family rating to Ba3 from B2 and probability of default rating to Ba3-PD from B2-PD.

Concurrently, the agency raised TUI AG's senior unsecured rating to Ba3 from B2 and junior subordinated rating to B2 from Caa1.

"We are upgrading TUI's ratings following shareholder approval and the expected upcoming completion of the proposed merger between TUI and TUI Travel," Sven Reinke, Moody's vice president, senior analyst and lead analyst for TUI, said in a news release.

"In addition to the positive effect on TUI's corporate structure and potential synergies as a result of the merger, the two-notch upgrade reflects continuing improvements in TUI's underlying operating profitability and financial profile."

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