DFS Deutsche Flugsicherung GmbH

This report does not constitute a rating action. Overview Key strengths Key risks Almost certain likelihood of extraordinary support from sole owner Germany. Profitability depends on worldwide development of air traffic. Critical role as the dominant air traffic provider for civilian and military flights in Germany. High pension obligations, mitigated by low financial debt. German constitution and the Aviation Act provide legal framework, which makes transition risk of likelihood of support currently irrelevant. Our assessment of its critical role is based on Germany being the sole owner of DFS and having a legal obligation to provide air traffic control (ATC) services, for which its only provider is DFS. Our assessment of the integral link is supported by DFS essentially acting

...S&P Global Ratings assesses that DFS Deutsche Flugsicherung GmbH (DFS) has an almost certain likelihood of support based on its critical role for and integral link with Germany. Our assessment of its critical role is based on Germany being the sole owner of DFS and having a legal obligation to provide air traffic control (ATC) services, for which its only provider is DFS. Our assessment of the integral link is supported by DFS essentially acting as an arm of the government with several representatives from different ministries determining the company's strategy. This results in an almost certain likelihood of extraordinary government support. Germany has the willingness and ability to provide support to DFS. In our opinion Germany will remain supportive of DFS, and we have no doubts about the federal government's propensity to support the company. The government also has sufficient financial resources to support its government-related entities in general and DFS in particular. We currently...

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