Lufthansa's Hybrid Bond Upgraded To 'CCC+' From 'CC' On Expected Deferred Coupon Fixture - S&P Global Ratings’ Credit Research

Lufthansa's Hybrid Bond Upgraded To 'CCC+' From 'CC' On Expected Deferred Coupon Fixture

Lufthansa's Hybrid Bond Upgraded To 'CCC+' From 'CC' On Expected Deferred Coupon Fixture - S&P Global Ratings’ Credit Research
Lufthansa's Hybrid Bond Upgraded To 'CCC+' From 'CC' On Expected Deferred Coupon Fixture
Published Sep 15, 2022
3 pages (1411 words) — Published Sep 15, 2022
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Abstract:

FRANKFURT (S&P Global Ratings) Sept. 15, 2022--S&P Global Ratings today said that it has raised its issue rating on the junior subordinated notes maturing in 2075 issued by Deutsche Lufthansa AG (BB-/Stable/B) to 'CCC+' from 'CC'. The upgrade of the hybrid follows the Sept. 14 announcement that the Economic Stabilization Fund (ESF) has sold its shareholding in Lufthansa in full. With this change, Lufthansa ceases to be subject to the conditions of the EU Temporary Framework, under which it received a state-aid package from the German government in June 2020. One of these conditions restricted coupon payments on the hybrid. We also understand that Lufthansa will compensate for the coupon payment deferred on Feb. 12, 2022, in a timely manner,

  
Brief Excerpt:

...September 15, 2022 FRANKFURT (S&P Global Ratings) Sept. 15, 2022--S&P Global Ratings today said that it has raised its issue rating on the junior subordinated notes maturing in 2075 issued by Deutsche Lufthansa AG (##-/Stable/B) to '###+' from '##'. The upgrade of the hybrid follows the Sept. 14 announcement that the Economic Stabilization Fund (ESF) has sold its shareholding in Lufthansa in full. With this change, Lufthansa ceases to be subject to the conditions of the EU Temporary Framework, under which it received a state-aid package from the German government in June 2020. One of these conditions restricted coupon payments on the hybrid. We also understand that Lufthansa will compensate for the coupon payment deferred on Feb. 12, 2022, in a timely manner, well ahead of the first anniversary of the deferral date, and expect this to be in accordance with terms. The '###+' rating on the hybrid notes takes into account a three-notch deduction (including one for deferral risk) from Lufthansa's...

  
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 Upgraded To 'CCC+' From 'CC' On Expected Deferred Coupon Fixture" Sep 15, 2022. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Lufthansa-s-Hybrid-Bond-Upgraded-To-CCC-From-CC-On-Expected-Deferred-Coupon-Fixture-2892294>
  
APA:
S&P Global Ratings’ Credit Research. (). Lufthansa's Hybrid Bond Upgraded To 'CCC+' From 'CC' On Expected Deferred Coupon Fixture Sep 15, 2022. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Lufthansa-s-Hybrid-Bond-Upgraded-To-CCC-From-CC-On-Expected-Deferred-Coupon-Fixture-2892294>
  
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