The rating action reflects a revision of Scope’s expectations for Lufthansa’s credit metrics, primarily due to a slower-than-anticipated recovery in profitability and the group’s capex plan.

Following the recent affirmation of the BBB-/Positive issuer rating, Scope has updated its analytical report on Deutsche Lufthansa AG.

The rating action reflects Scope’s expectation that Lufthansa will maintain its good credit metrics in 2024 despite a challenging market environment.

The raised Outlook reflects improving credit metrics driven by the continuing recovery in air traffic and by deleveraging.

The affirmation reflects a stronger financial risk profile that compensated for the loss of parent support after the German state sold its remaining stake.

The raised Outlook reflects improving credit metrics expected over the next two years, driven by recovering air traffic and deleveraging.

The affirmation reflects an improving financial situation, slower cash burn and secured liquidity despite the slow recovery of air traffic. However, the Negative Outlook reflects continuing uncertainties regarding the pandemic and a potential recovery.

Lufthansa issuer rating affirmed at BBB-, Outlook Negative, following provision of state aid

Lufthansa rating downgraded from BBB to BBB- and under review for a possible downgrade due to projected deterioration in financial risk profile following impact of coronavirus.

Corporate credit rating on German aviation group Deutsche Lufthansa AG raised to BBB from BBB-. Senior unsecured debt rating raised to BBB from BBB- previously. Subordinated junior debt raised to BB+ from BB. Short-term rating affirmed. Outlook Stable.