The Fitch agency downgraded Finmeccanica's long-term rating from 'BBB+' to 'BBB' with a negative outlook, while its short-term rating dropped to 'F3' ago 'F2'. Fitch said the decision was due to "structural issues" that prompted the defense and aerospace group last week to cut its estimates for 2011 results.
In fact, the rating agency considered that the significant deleveraging in the short term is necessary for the company to maintain a strong investment grade rating and for it to be achieved through divestitures and not through the generation of free cash flow, envisaged by the agency at modest levels over the next two years. According to Fitch, in a short time Finmeccanica will carry out some disposals the proceeds of which will be used to reduce net debt. Finally, Fitch underlined that it will assign the company a stable outlook immediately after the results of the review or when the company demonstrates a stabilization of its financial profile.
