Our 'BBB-' rating on Deutsche Lufthansa AG is derived from: Our anchor of 'bbb-', based on our "satisfactory" business risk and "significant" financial risk profile assessments for the company. The modifiers have no impact. Strong market position in Frankfurt, Munich, Zurich, and Vienna. Diversity of operations outside the passenger airline business offering more stability than if it were solely an airline. Good exposure to long-haul and premium traffic. Exposure to the volatile airline industry. Significant financial risk profile with our view that the company will be able to maintain adjusted FFO to debt above 23%. In our base case we expect modest improvement in cash flow ratios due to declining pension obligations and growing profitability. The stable outlook reflects our
