Ratings published by independent rating agencies are a key prerequisite for efficient and flexible access to the capital market. They assist debt capital market investors in evaluating the risk situation of companies and their financial instruments.
Corporate Rating
Corporate Rating | Fitch | Moody's | Standard & Poor's |
---|---|---|---|
Long-term |
BB | Ba3 | B+ |
Outlook | stable | stable | positive |
Latest Update Moody's
February 2025 – Moody’s upgrades from 'B1' to 'Ba3' rating with a stable outlook.
The rating upgrade reflects TUI’s better than Moody’s expected results in fiscal year 2024 leading to improved credit metrics and cash flow, driven by growth across all business segments.
The rationale highlights the increase in bookings per Q1 2025, indicating resilient customer demand despite challenging macroeconomic conditions in TUI's main source markets. The delivery of new vessels, hotel investments and TUI’s ongoing implementation of its asset-light and digitalized model are expected to support future growth.
The stable outlook reflects Moody’s expectations on TUI’s leverage, on the on-going positive free cash flow, and that TUI will maintain solid liquidity throughout the year.
New Rating Fitch
February 2025 – Fitch published a rating for TUI Group for the first time - BB with stable outlook.
The rating reflects TUI's leading market position and strong brand recognition in the European and international tourism industry. The rating agency also emphasises TUI's conservative debt coverage ratio.
In addition, Fitch recognizes that TUI operates across the whole tourism value chain and profits from the integration of its business segments. Furthermore the agency highlights the differentiation and diversification benefits from the vertical integration of hotels, cruises, airlines and activities.
Latest Update Standard & Poor's
February 2024 - Standard & Poor's upgrades from 'B' to 'B+' rating with a positive outlook.
The rating upgrade is based on higher revenue and reduced leverage of the group and reflects S&P’s view that TUI is in a good position to recover passenger levels and customer reach above 2019 levels. Furthermore, S&P acknowledges TUI’s strategic initiatives as margin accretive.
The positive outlook reflects S&P‘s forecast for significantly improved credit metrics in 2024 and 2025, due to a margin improvement in the group's markets and airlines segments, and a solid recovery in TUI's cruise JV, which leads S&P to the conclusion that dividend payments by the JV could support the group's profitability and cash flow from fiscal 2025 onwards.