Thomas Cook Sent Deeper Into Junk Territory by S&P and Fitch

Thomas Cook has been downgraded even further into junk territory by two rating agencies as they warned on the group’s ability to pay its debt and the risk to the business should it not sell its airline as planned, the Financial Times reported. Fitch and S&P Global Ratings both cut the 178-year-old travel company’s rating to CCC+. The reduction from B and B minus respectively brings the rating deeper into the speculative-grade classification that denotes a greater risk of default than issuers that hold investment grade ratings. Thomas Cook had been rated in the single-B range by both credit rating groups since 2012, Refinitiv data show. Fitch also placed Thomas Cook on “rating watch negative”, meaning that it sees a “heightened probability” of a further reduction. S&P said its outlook on the issuer’s rating was “negative”. Read more