Fitch downgrades Rolls-Royce

Fitch Ratings said it downgraded Rolls-Royce plc’s long-term issuer default rating and senior unsecured rating to BB+ from BBB-.

“The downgrade reflects expectations of a materially greater free cash outflow for 2020 of around £4.1 billion. We, therefore, forecast gross debt to rise in 2020-2023, resulting in leverage metrics remaining outside of their sensitivities until at least 2022. All these result in a financial profile that is no longer representative of an investment-grade rating which, combined with a weakening business profile driven by an under-performing and structurally smaller civil aerospace division, have led to our assessment of a BB+ rating,” Fitch said in a press release.

The outlook is negative.

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