The ratings on Germany-based aviation group Deutsche Lufthansa AG (Lufthansa) reflect Standard&Poor's Ratings Services' view of the company's "satisfactory" business risk profile and "significant" financial risk profile. The "satisfactory" business risk profile reflects our opinion of its strong market positions, the diversity in its operations, and its good exposure to high-yield premium traffic. We consider that these strengths are partly offset by the high risk, cyclical airline industry, which is capital-intensive and subject to volatile fuel costs. The "significant" financial risk profile reflects our view that the company will proactively manage its debt maturity profile, maintain strong liquidity and continue to have adjusted FFO to debt above 25%. Lufthansa's profitability improved in the first half of 2012 but
