On June 18, 2003, Standard&Poor's Ratings Services affirmed its 'BBB+/A-2' corporate credit ratings on Germany-based aviation group Deutsche Lufthansa AG, following a sector review on the possible risks relating to the war in Iraq. The ratings were also removed from CreditWatch, where they had been placed on March 18, 2003. The outlook is negative. Lufthansa reported debt of €3.9 billion ($4.6 billion) and provisions for postretirement liabilities of €4.1 billion, at March 31, 2003. The affirmation reflects Lufthansa's demonstrated ability to generate positive free operating cash flow and improve its cost structure in an unfavorable trading environment. Nevertheless, the group will face the continued challenges of volume and pricing pressures in most of its markets for the foreseeable
