Fitch upgrades ABB to A-

Fitch Ratings said it upgraded ABB Ltd.'s long-term issuer default rating and senior unsecured rating to A- from BBB+.

The agency also affirmed the short-term issuer default rating at F2.

The outlook is stable.

Fitch said the upgrade reflects its view that ABB's business and financial profile is commensurate with an A- rating and can accommodate a moderate weakening of its performance in 2014.

The group has improved its business profile and successfully executed on past acquisitions. It also continues to cut costs and achieve above-average profitability and healthy free cash flow. The agency said it expects funds from operations adjusted leverage to remain below 2.5x, based on free cash flow of around $1 billion through the cycle.

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