Rolls-Royce Holdings Plc had its credit rating raised to one level below investment grade by Fitch Ratings as the chief executive officer’s efforts to restore the UK aero engine company’s finances continues to pay off.
The ratings company raised the long-term rating to BB+ from BB, and said that it had updated its view on the company following Rolls Royce’s recently announced medium term financial targets as well as meetings with management. Company targets to achieve operating profit of as much as £2.8 billion ($3.5 billion) and free cash flow of as much as £3.1 billion by 2027 are “ambitious but broadly achievable,” Fitch said.
