Lufthansa?s Hybrid Bond Affirmed At 'CC' Despite Upcoming Coupon Deferral - S&P Global Ratings’ Credit Research

Lufthansa?s Hybrid Bond Affirmed At 'CC' Despite Upcoming Coupon Deferral

Lufthansa?s Hybrid Bond Affirmed At 'CC' Despite Upcoming Coupon Deferral - S&P Global Ratings’ Credit Research
Lufthansa?s Hybrid Bond Affirmed At 'CC' Despite Upcoming Coupon Deferral
Published Jan 25, 2022
4 pages (1782 words) — Published Jan 25, 2022
Price US$ 150.00  |  Buy this Report Now

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Abstract:

FRANKFURT (S&P Global Ratings) Jan. 25, 2021--S&P Global Ratings today said that it has affirmed its 'CC' issue rating on the hybrid bond issued by Deutsche Lufthansa AG (BB-/Stable/B). The German government's participation in Lufthansa's shareholder structure restricts the upcoming coupon payment on the company's junior subordinated notes maturing in 2075. In line with this, Lufthansa announced on Jan. 18, 2022, that it will defer the coupon payment due Feb. 12, 2022, according to its terms. With this move, Lufthansa adheres to the regulations of the EU Temporary Framework under which it received a state-aid package from the German government in June 2020. Except for the equity participation, all the German state-aid instruments (including Silent participation I and II) were

  
Brief Excerpt:

...January 25, 2022 FRANKFURT (S&P Global Ratings) Jan. 25, 2021--S&P Global Ratings today said that it has affirmed its '##' issue rating on the hybrid bond issued by Deutsche Lufthansa AG (##-/Stable/B). The German government's participation in Lufthansa's shareholder structure restricts the upcoming coupon payment on the company's junior subordinated notes maturing in 2075. In line with this, Lufthansa announced on Jan. 18, 2022, that it will defer the coupon payment due Feb. 12, 2022, according to its terms. With this move, Lufthansa adheres to the regulations of the EU Temporary Framework under which it received a state-aid package from the German government in June 2020. Except for the equity participation, all the German state-aid instruments (including Silent participation I and II) were repaid and cancelled by the end of last year. Also, because of a capital increase by Lufthansa in October 2021, the government's stake in the company via the Economic Stabilization Fund (ESF) was diluted...

  
Report Type:

Ratings Action

Ticker
LHA@GR
Issuer
Deutsche Lufthansa AG
GICS
Airlines (20302010)
Sector
Global Issuers, Structured Finance
Country
Germany
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Lufthansa?s Hybrid Bond Affirmed At 'CC' Despite Upcoming Coupon Deferral" Jan 25, 2022. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Lufthansa-s-Hybrid-Bond-Affirmed-At-CC-Despite-Upcoming-Coupon-Deferral-2785014>
  
APA:
S&P Global Ratings’ Credit Research. (). Lufthansa?s Hybrid Bond Affirmed At 'CC' Despite Upcoming Coupon Deferral Jan 25, 2022. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Lufthansa-s-Hybrid-Bond-Affirmed-At-CC-Despite-Upcoming-Coupon-Deferral-2785014>
  
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