Moody’s changes Leonardo to positive

Moody's Investors Service said it changed Leonardo SpA’s outlook to positive from stable and affirmed its corporate family rating at Ba1, probability of default rating at Ba1-PD and senior bonds at Ba1. Meccanica Holdings USA, Inc.’s outlook was similarly changed, and its backed senior bonds were affirmed at Ba1.

The agency said the positive outlook reflects Leonardo's significant operational turnaround over a relatively short three-year period despite challenging market conditions, as well as the agency’s expectations that it will remain financially conservative and further strengthen its financial credit metrics over the next 12 to 18 months.

However, Moody's is mindful that despite improvements, market conditions remain fragile and Leonardo's margins may face pressure from competition, persistently low defense budgets and changes in government contracting practices.

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