Fitch upgrades Atlas Copco

Fitch Ratings said it upgraded Atlas Copco AB's long-term issuer default rating and senior unsecured rating to A+ from A.

The outlook is stable.

Fitch also affirmed Atlas Copco's short-term ratings at F1.

The upgrade is driven by the improvement in Atlas Copco's business risk, following the split of its mining and rock excavation business, and its sustained solid capital structure, the agency said.

Despite the loss of revenue diversification, Fitch said it believes the split reduces Atlas Copco's exposure to cyclical end markets, reducing volatility in its earnings.

The agency said it expects Atlas Copco's profitability, which is already superior to peers, to improve, maintaining very high profit margins for the sector.

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