Fitch affirms Airbus

Fitch Ratings said it affirmed Airbus Group SE's long-term issuer default rating at A-.

The agency also affirmed Airbus’ and Airbus Group Finance BV's senior unsecured ratings at A- and Airbus' short-term issuer default rating at F2.

The outlook on the long-term issuer default rating is stable.

Fitch said the ratings reflect Airbus' strong position in the large commercial aircraft market, a large order backlog, which provides good visibility on top line evolution and a robust liquidity profile. Profitability and cash flow is currently weak for the rating, reflecting the costs associated with the introduction of new aircraft including development costs, inventory build-up and high unit cost of early deliveries.

The agency expects profitability to improve significantly from 2017, driven by production rate increases, cost improvement in new programs and a positive FX impact.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.