...- German airline Lufthansa continues to report strong operating performance, despite various operational headwinds and competitive challenges over the past two years. - We believe Lufthansa will stabilize EBITDA at 4.5 billion-5.0 billion, sustain its reduced net debt position, and generate sufficient free operating cash flow (FOCF) to improve its resilience against the next potential industry downturn, while keeping adjusted funds from operations (FFO) to debt above our 30% threshold for a '###' rating. - We are raising our issuer credit ratings on Lufthansa to '###/A-2' from '###-/A-3', our senior unsecured issue rating to '###' from '###-', and our junior subordinated issue rating to '##+' from '##'. - The stable outlook reflects our view that Lufthansa will benefit from consistent passenger traffic growth, make capacity adjustments and nonfuel cost savings, and financially turn around Eurowings to counterbalance lower yields and higher fuel expenses....
