On March 18, 2003, Standard&Poor's Ratings Services placed its 'BBB+/A-2' corporate credit ratings on Germany-based aviation group Deutsche Lufthansa AG (Lufthansa) on CreditWatch with negative implications, following a sector review on the possible risks relating to the war in Iraq. The CreditWatch placement stems from the conflict in Iraq, and the likely effect on the level of activity in the airline industry and related sectors. Lufthansa already faces the challenges of volume and pricing pressures in most of its markets. The operating environment is likely to deteriorate further, at least in the near term. Lufthansa had reported debt of €4.7 billion ($5.0 billion) at Dec. 31, 2002. The group's financial position is currently one of the strongest among
