Fitch revises Aernnova Aerospace view to stable

Fitch Ratings said it revised Aernnova Aerospace SAU's outlook to stable from negative, while affirming its long-term issuer default rating at B.

“While the recovery of Aernnova's operating profitability is slower than expected, we anticipate underlying strong demand from original equipment manufacturers (OEMs) to support a further rebound in Aernnova's backlog, enhancing revenue visibility and cash flow generation,” Fitch said in a news release.

“This should help improve its operating profitability and generate sustainable positive free cash flow (FCF), supporting Aernnova's deleveraging capacity.”

Fitch, however, said Aernnova's recovery risks being adversely affected by inflationary pressures, a negative macroeconomic environment and supply-chain constraints.

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