S&P lifts outlook on Thomas Cook

17th Apr 2014 08:00

Standard & Poor's (S&P )has raised its outlook on Thomas Cook from 'stable' to 'positive', as it hailed the progress of the travel group's transformation strategy.The holiday operator, which came close to collapse in 2011, has been undergoing a major restructuring under Chief Executive Harriet Green, who joined in July 2012 to help turnaround the business.In March, Thomas Cook reported a 2% rise in bookings for the summer compared with last year, despite "significant market disruption" due to unrest in Egypt.The company also revealed that its winter trading had been "satisfactory", with 93% of holidays sold, in line with last year.On Thursday, the group announced that ratings agency S&P has raised its outlook and kept its rating unchanged at 'B'."This is another milestone in the rapid delivery of our strategy of sustainable profitable growth," Green said. "We are very pleased that S&P has recognised the pace and extent of our transformation and we appreciate its confidence in our ability to maintain the momentum."S&P said the operating performance of Thomas Cook has improved thanks to its overhaul. The agency expects the company's credit metrics will continue to strengthen as cost-saving initiatives as part of its turnaround strategy lead to earnings growth and debt reduction. Shares rose 1.58% to 166.70p at 08:10 on Thursday.RD