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How Well Prepared Are European Airlines For The Turbulence Of Another Recession? Mar 12

  • ID: 2088383
  • March 2012
  • Region: Europe
  • Standard & Poors

FEATURED COMPANIES

  • British Airways PLC
  • Deutsche Lufthansa AG
  • SAS AB
  • MORE

Abstract
Just as Europe's airlines have recovered from the sharp downturn of 2009, a weakening economic environment is again threatening to blow them off course. Standard & Poor's Ratings Services' economists currently see a 40% likelihood of a true double-dip recession, leading to a decline in GDP in Western Europe over 2012. Yet we believe a recession would likely not affect the ratings of European carriers Deutsche Lufthansa AG (BBB-/Stable/A-3) and British Airways PLC (BB-/Stable/--), because they benefit from strong liquidity positions that should cushion them against short-term industry shocks or unavailability of funding. In contrast, SAS AB (B-/Negative/--) would in our opinion be vulnerable to weakening conditions. Our downside credit scenario assumes a modest recession in the airlines' home markets...

Companies mentioned in this report are:
- Deutsche Lufthansa AG
- British Airways PLC
- SAS AB

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine READ MORE >

Note: Product cover images may vary from those shown

- Deutsche Lufthansa AG
- British Airways PLC
- SAS AB

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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