Fitch downgrades GKN

Fitch Ratings said it downgraded GKN Holdings Ltd.'s long-term issuer default rating and senior unsecured debt rating to BB+ from BBB- and short-term issuer default rating to B from F3.

The outlook is stable.

Fitch also said it downgraded GKN's subsidiary, GKN Aerospace Services Ltd.'s issuer default rating to BB from BB+.

The downgrades reflect the company's credit profile within the broader group structure context of its 100% parent company, Melrose Industries plc, which purchased GKN in the first half of 2018, the agency said.

GKN exhibits a business profile that is strong for a BB+ rating, including market leading positions in auto and aerospace supply, a diversified customer and good end-market exposure, Fitch said.

The ratings also consider the full control Melrose management has over GKN's operations and cash flows, the agency said.

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