Fitch Affirms MTU Aero Engines at BBB-; Outlook Stable

Fitch Ratings has affirmed Germany-based aerospace and defence company MTU Aero Engines (MTU) Long-Term Issuer Default Rating (IDR) and senior unsecured rating at BBB-. The Short-Term IDR has also been affirmed at ‘F3’. The Outlook on the Long-Term IDR is Stable. The ratings are supported by MTU’s strong financial profile, diverse portfolio of programmes and stable cash flows over the long term. The Stable Outlook reflects Fitch’s expectation that financial metrics, including key measures such as earnings margins, funds from operations (FFO) and net lease-adjusted leverage, will not change significantly in the medium term.