The change in Outlook reflects the risk that leverage will remain at a level that is not commensurate with the rating, given a significant reduction in available cash.

This publication does not constitute a rating action.

The downgrade is driven by Scope’s view of Ilija Batljan Invest’s announced intention to restructure its senior unsecured corporate bonds, which may be treated as a (Selective) Default under the agency’s rating definitions.

Notification on the change of solicitation status

This publication does not constitute a rating action.

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.

The periodic review has resulted in no rating action.

Resilient budgetary performance, solid liquidity position, low debt compared to peers and solid economic prospects support the rating. Limited flexibility in revenue and expenditure are constraints.

A wealthy economy, strong fiscal fundamentals and a robust external position are credit strengths. Exposure to external shocks as a small, open economy, ageing-related fiscal pressures and financial imbalances are challenges.

The affirmation follows the announcement of Richter’s long-term strategy which outlines revenue and profitability improvement while maintaining a very strong financial risk profile.