On March 8, 2004, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Germany-based aviation group Deutsche Lufthansa AG to 'BBB' from 'BBB+'. At the same time, Standard&Poor's affirmed its'A-2' short-term corporate credit rating on the group. The outlook is stable. The downgrade primarily reflects the deterioration in the group's business profile, particularly the weaker-than-expected performance of the catering and leisure businesses and the continuing uncertainty regarding the timing of sustainable recovery in the depressed airline passenger business. Standard&Poor's also notes the increased level of competition from low-cost carriers in the group's domestic and continental markets. On Sept. 30, 2003, Lufthansa reported €3.4 billion of on-balance-sheet financial debt and provisions for retirement benefit
