Lenders from travel agency Thomas Cook must take seriously into account that they can whistle for their money. The credit rating agencies S&P and Fitch both dropped their opinion on creditworthiness further down Thursday in the so-called junk status, so it’s a mess.
Organizations such as S&P and Fitch estimate the likelihood that investors or lenders will be faced with default. A lower rating makes it more expensive and harder for a company to borrow money. S&P and Fitch now both have the rating on CCC +.
Last week the company came out with disappointing results. This was followed by a write-down by Citigroup and since then the market value has fallen by tens of percent.
The Thomas Cook share was again nearly 7 percent lower in London at the start of the afternoon on Thursday.