Fitch affirms Sukhoi

Fitch Ratings said it affirmed Sukhoi Civil Aircraft JSC's long-term issuer default rating, long-term local-currency issuer default rating and foreign- and local-currency senior unsecured ratings at BB; its short-term issuer default rating and short-term local-currency issuer default rating at B; its national long-term rating at AA-(rus); and its national short-term rating at F1+(rus).

The outlook is negative.

The agency said the ratings are driven by the company's strong links to its ultimate majority shareholder, the Russian government (BBB), and the negative outlook reflects Fitch's negative outlook on the sovereign ratings of the Russian Federation.

Other factors influencing Sukhoi's ratings include the likely strong local demand for the company's product, the presence of French-based engine manufacturer SNECMA as a risk-sharing partner on the Sukhoi Super Jet 100 program and the long-term positive cash flow generation capabilities of the company's business model, Fitch said.

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