Fitch applies BBB to SKF, notes

Fitch Ratings said it assigned SKF AB a BBB long-term issuer default rating and F2 short-term issuer default rating.

The agency also assigned a senior unsecured rating of BBB to the company’s notes.

Fitch said the BBB rating reflects SKF's market-leading position, a diversified customer base, stable funds from operations (FFO) and free cash-flow (FCF) generation and sound liquidity.

Factors limiting the rating include exposure to some volatile end-markets, earnings margin pressure in its automotive division and moderate leverage levels, the agency added.

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