Fitch: Leonardo – Finmeccanica to positive

Fitch Ratings said it revised the outlook on Leonardo – Finmeccanica SpA to positive from stable and affirmed its long-term issuer default rating and short-term issuer default rating at BB+ and B, respectively.

The agency also affirmed Meccanica Holdings USA Inc.'s senior unsecured ratings at BB+.

Fitch said the outlook revision reflects Leonardo's strengthened business profile and the expectation of a further improvement in credit metrics beyond that already achieved as a result of cost saving and restructuring efforts.

Disposals of non-core, underperforming assets have resulted in a stronger business portfolio, with lower risk of unexpected earnings volatility.

However, the agency explained, weakness in the helicopter market as a result of the low oil price environment adds uncertainty to the expected deleveraging given the importance of the segment to the group's cash generation.

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