Fitch applies BB+ to GKN Aerospace

Fitch Ratings said it assigned a BB+ issuer default rating to GKN Aerospace Services Ltd.

The outlook is stable.

Fitch said the rating is based on the application of its parent and subsidiary linkage criteria, using a top-down approach which leads to the rating of GKN Aerospace being one notch below that of its parent, GKN Holdings plc (BBB-/stable).

The strength of the links between GKN Holdings and GKN Aerospace is based on the strong operational and strategic ties, exemplified by GKN Aerospace’s importance to the group as the sole aerospace entity within the group in the United Kingdom, common management control, and a centralized treasury, the agency explained.

These factors are offset by weak to moderate legal ties, which lead to the one-notch differential between the two entities.

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