Fitch affirms GKN Holdings

Fitch Ratings said it affirmed GKN Holdings plc's issuer default rating and senior unsecured rating at BBB- and short-term rating at F3, following the announced acquisition of Volvo Aerospace from AB Volvo for £633 million.

The outlook is stable.

The acquisition is seen as positive for GKN's business profile as it represents a good strategic fit, allowing the company to broaden its footprint in aerospace and obtain complementary technologies and products to its existing portfolio, Fitch said.

It also improves the group's balance between the more stable aerospace and defense activities with those of auto supply, the agency said.

These factors mitigate the temporary deterioration in the group's financial profile resulting from the transaction, Fitch added.

© 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.