Germany-based aviation group Lufthansa has announced that business conditions in the airline industry are weakening and has reduced its earnings expectations for 2009. We are placing the 'BBB' long-term corporate credit and senior unsecured debt ratings on Lufthansa on CreditWatch with negative implications. The CreditWatch placement reflects uncertainty pending further details on additional actions that the group might take to offset the decline in its profits. Any lowering of the corporate credit rating will likely be limited to one notch. On June 22, 2009, Standard&Poor's Ratings Services placed its 'BBB' long-term corporate credit rating and senior unsecured debt ratings on Germany-based aviation group Deutsche Lufthansa AG on CreditWatch with negative implications. At the same time, the A-3 short-term
