Fitch upgrades Thomas Cook, notes

Fitch Ratings said it upgraded Thomas Cook Group plc's (TCG) long-term issuer default rating to B+ from B.

The agency also raised the senior unsecured notes to BB-/RR3 from B+/RR3 for both TCG and Thomas Cook Group Finance plc.

The outlook was revised to stable from positive.

Fitch said the upgrade reflects Thomas Cook’s sustainably improved business profile, which has demonstrated increasing resilience to external events over the years.

“This together with the group's focus on cutting costs and improving operating margins has helped to strengthen the business model, while the efforts made to turn around the German airlines business are now becoming evident, resulting in an overall improved credit profile,” the agency said in a news release.

“TCG has demonstrated a strong commitment to generating positive free cash flow and to reducing leverage, resulting in enhanced financial flexibility and limited refinancing risks consistent with a higher rating.”

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