Fitch cuts Thales to BBB+

Fitch Ratings said it downgraded Thales SA's long-term issuer default rating and senior unsecured ratings to BBB+ from A-. Fitch also said it revised the outlook on Thales' long-term issuer default rating to stable from negative and affirmed its short-term issuer default rating at F2.

The downgrade reflects a view that the group's key financial metrics, which are likely to remain weak in the short- to medium-term, are no longer sufficiently mitigated by the company's strong business profile, Fitch said.

The agency said it believes that an improvement in Thales' operating margins and cash flow will be gradual and that it could take a number of years for the company's metrics to return in line with similarly-rated European peers.

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