Deutsche Lufthansa AG's Proposed Unsecured Notes Rated 'BB-'

FRANKFURT (S&P Global Ratings) Feb. 4, 2021--S&P Global Ratings today assigned its 'BB-' issue rating to the proposed senior unsecured notes due 2025 and 2028 to be issued by Deutsche Lufthansa AG. The notes will be issued under the €4.0 billion debt issuance program. We expect Lufthansa will use the net proceeds for general corporate purposes and repayment of the state aid package. We rate the proposed notes at the same level as our long-term issue credit rating on Lufthansa (BB-/Negative/B). For the latest issuer credit rationale, please see "Lufthansa Downgraded To 'BB-' From 'BB' On Lower Air Traffic; Outlook Negative", published Nov. 19, 2020, on RatingsDirect. The recovery rating is '3' indicating meaningful recovery prospects (50%-70%; rounded estimate: 65%)

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