Shares in Thomas Cook soared by 45% on Wednesday morning.
Following a week where shares plunged by 60%, they rebounded after Moody’s changed the outlook from negative from stable.
The company’s stock value has plummeted over the past week since the group issued a second profit warning in a couple of months.
Holiday bookings through Thomas Cook fell over the summer as the heat wave led more people to stay in the UK.
“2018 was a disappointing year for Thomas Cook, despite achieving some important milestones in our strategy for transforming the business,” said the group’s chief executive Peter Fankhauser last week.
“After a good start to the year, we experienced a larger-than-anticipated decline in gross margin following the prolonged period of hot weather in our key summer trading period,” he added.
Vitali Morgovski, Moody’s assistant vice president-analyst, said: “Our rating action reflects the deterioration of credit metrics after unfavourable earnings development in the financial 2018 and the group’s weakened liquidity.”
“Furthermore, the negative outlook reflects Moody’s concerns regarding the company’s ability to recover its profitability and cash generation in the coming fiscal year as the macroeconomic tailwind becomes less supportive whereas the outcome of Brexit negotiations and their potential impact on customer behaviour that may include a shift to late bookings exacerbates the uncertainty,” he added.
Shares in Thomas Cook (LON: TCG) are currently trading +36.37% (1311GMT).