4-Sep-2009 12:52 PM

Moody's cuts Lufthansa credit rating to junk

Moody's downgraded Lufthansa’s long-term issuer ratings by one step from 'Baa3' to 'Ba1', citing weak market conditions and pressure on yields and volumes and the decline in profit from both cargo and passenger operations (Dow Jones, 03-Sep-2009). Approximately EUR2.1 billion in debt is affected. Standard & Poor's Ratings Services cut Lufthansa rating from 'BBB' to 'BBB-' last week, stating it expects the carrier’s 2009 operating performance will be “marginally profitable”, at best.