Fitch maintains GKN watch

Fitch Ratings said it maintained GKN Holdings plc's long-term issuer default rating of BBB- and short-term IDR of F3 on rating watch negative following the GKN majority shareholder approval to sell all shares to Melrose Industries plc.

The agency also maintained the rating watch negative on the BB+ IDR subsidiary GKN Aerospace Services Ltd.

Fitch said the rating watch was previously related to the proposed divestment of GKN's automotive division, but as that transaction has been terminated following the Melrose acquisition, it now reflects the uncertainty surrounding the emerging credit profile of GKN following the sale to Melrose, including GKN's ultimate debt level and group structure.

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