Ratings confirmed


Development of ratings

Rating/outlook

2011

2010

2009

2008

2007

Standard & Poor’s

BBB–/
stable

BBB–/
stable

BBB–/
negative

BBB/
negative

BBB/
stable

Moody’s

Ba1/
stable

Ba1/
stable

Ba1/
stable

Baa3/
stable

Baa3/
positiv

Its current credit ratings make Lufthansa the best rated airline in Europe. Over the course of 2011 the rating agencies Moody’s and Standard & Poor’s both confirmed their ratings. The current grades reflect the sound financial profile and the diversification across a broad route network and various business segments. The following table provides further details.

Lufthansa’s credit ratings

Standard & Poor’s
(December 2011)*

Moody’s Investors Service
(June 2011)*

Long-term: BBB-
Short-term: A-3
Outlook: Stable

Long-term: Ba1
Short-term: Not Prime
Outlook: Stable

*

Latest report.

 

 

 

 

Strengths

Strengths

Plus-Zeichen (Grafik)

One of the world‘s leading airlines with a strong position at hubs in ­Frankfurt and Munich

Plus-Zeichen (Grafik)

One of the largest airlines in the world with a strong competitive ­position

Plus-Zeichen (Grafik)

Diversification of revenue as one of the leading European providers of freight transport, maintenance, repair and over-haul services and airline catering

Plus-Zeichen (Grafik)

Robust business profile with ­diversified business segments ­reduces volatility

Plus-Zeichen (Grafik)

Strong position in profitable long-haul business and premium traffic

Plus-Zeichen (Grafik)

Climb 2011 initiative to safeguard long-term competitiveness and improve cost structure and income

Plus-Zeichen (Grafik)

Good liquidity holdings

Plus-Zeichen (Grafik)

Solid liquidity, large proportion of the fleet is owned, comparatively low debt

Plus-Zeichen (Grafik)

Experience in flexibly adjusting ­capacity and demand as well as costs when the economy slows

Plus-Zeichen (Grafik)

Performance indicators profit from industry upturn and cautious acquisition policy

 

 

 

 

Weaknesses

Weaknesses

Minus-Zeichen (Grafik)

Weak industry environment due to deteriorating economic growth

Minus-Zeichen (Grafik)

Diffident sector forecasts and ­increase in fuel prices weigh on the profitability of the airline industry

Minus-Zeichen (Grafik)

Difficult environment, cyclical industry, strong price competition and capital intensity

Minus-Zeichen (Grafik)

Profitability depends on volatile fuel prices

Minus-Zeichen (Grafik)

Operating losses at Austrian Airlines and bmi

Minus-Zeichen (Grafik)

Tough competition on home and European market

Minus-Zeichen (Grafik)

Limited flexibility to increase the share of secured financing

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