Summary: DFS Deutsche Flugsicherung GmbH

The ratings on DFS reflect our view of its critical role for its 100% owner, Germany, and its integral link with the government, under our criteria for rating government-related entities (GREs; see "Rating Government-Related Entities: Methodology And Assumptions," published March 25, 2015). We assess extraordinary support from Germany, in the event of financial distress at DFS, as almost certain. This leads us to equalize the ratings on DFS with those on the sovereign. We assume that DFS plays a critical role as its default would crucially affect the federal government. The company provides ATC operations for all civilian and military flights in Germany. This is a sovereign function according to the German Aviation Act and Basic Law, and cannot be

...The ratings on DFS reflect our view of its critical role for its 100% owner, Germany, and its integral link with the government, under our criteria for rating government-related entities (GREs; see "Rating Government-Related Entities: Methodology And Assumptions," published March 25, 2015). We assess extraordinary support from Germany, in the event of financial distress at DFS, as almost certain. This leads us to equalize the ratings on DFS with those on the sovereign. We assume that DFS plays a critical role as its default would crucially affect the federal government. The company provides ATC operations for all civilian and military flights in Germany. This is a sovereign function according to the German Aviation Act and Basic Law, and cannot be readily undertaken by a private entity. In our view, if DFS ceased to exist, the government would have to create a similar entity or conduct this service itself. Furthermore, we believe that the federal government has a strong interest in keeping...

Summary