Deutsche Lufthansa AG

Lufthansa's dominant market shares at its Frankfurt, Munich, Zurich, and Vienna hubs. Diversity of operations outside the passenger airline business, offering more stability than if the company were solely an airline. One of the world's largest route networks and balanced exposure to high-yielding, premium, and long-haul traffic across its route portfolio. Exposure to the high-risk airline industry. Higher cost base than some peers. Solid financial performance and S&P Global Ratings-adjusted ratio of adjusted funds from operations (FFO) to debt that improved to nearly 40% in 2017 (from 24% a year earlier) and enhanced Lufthansa's financial flexibility to weather the next potential industry downturn. Sizable (albeit most recently structurally reduced) and volatile pension obligations that can lead to material differences in

...Business Risk: Satisfactory Financial Risk: Intermediate + Lufthansa's dominant market shares at its Frankfurt, Munich, Zurich, and Vienna hubs. + Diversity of operations outside the passenger airline business, offering more stability than if the company were solely an airline. + One of the world's largest route networks and balanced exposure to high-yielding, premium, and long-haul traffic across its route portfolio. + Exposure to the high-risk airline industry. + Higher cost base than some peers. + Solid financial performance and S&P Global Ratings-adjusted ratio of adjusted funds from operations (FFO) to debt that improved to nearly 40% in 2017 (from 24% a year earlier) and enhanced Lufthansa's financial flexibility to weather the next potential industry downturn. + Sizable (albeit most recently structurally reduced) and volatile pension obligations that can lead to material differences in financial ratios if key assumptions about pensions change. + Track record of credit-supportive...

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