LONDON (Standard&Poor's) May 24, 2004--Standard&Poor's Ratings Services said today that the German aviation group Deutsche Lufthansa AG's (Lufthansa; BBB/Stable/A-2) announcement of plans for a capital increase of at least €752 million ($895 million) in June 2004, to fund future investment in its fleet and infrastructure, will not affect the ratings or outlook on the group. The proposed raising of fresh capital, which will take the form of a rights issue, will strengthen the group's equity base, which had reduced in 2003. The decision reflects the conservative financial policy of the management. During financial 2003, the group's capital structure was adversely affected by a combination of challenging trading conditions for airline carriers and substantial goodwill write-downs at
