The ratings on Germany-based aviation group Deutsche Lufthansa AG are supported by what Standard&Poor's Ratings Services sees as dominant market positions, a resilient operating performance, and a healthy balance-sheet structure. We consider that these strengths are partly offset by the high-risk and cyclical airline industry, the adverse effects of the current global financial conditions on corporate and consumer demand, and volatile fuel costs. In common with other operators in the airline sector, Lufthansa faces increasingly difficult market conditions caused by a slowdown in global economic growth. Prospects for the world economy and passenger air traffic have worsened in the first quarter of 2009 as the full effects of the liquidity squeeze on world markets have taken hold. Future
