Fitch affirms 3 European aerospace companies

Fitch Ratings said it affirmed the ratings of three European aerospace and defense companies. BAE Systems plc's long-term issuer default rating was affirmed at BBB+. Finmeccanica SpA's long-term issuer default rating was affirmed at BBB+ and Rolls-Royce Group plc's long-term issuer default rating was affirmed at A-.

The agency said the affirmations follow a review of the companies' financial and business profiles.

Despite pressure on defense budgets in home markets limiting revenue growth potential to some degree in the short- to medium-term, the three companies benefit from good business and geographical diversity, which limits their exposure to the segments facing challenges, Fitch said.

Their financial profiles and cash generation have remained solid through the recent recession and underpin the stable outlooks, the agency said.

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