...The EMEA Aerospace and Defence (A&D) sector displays solid liquidity positions (see the link to Fitch Ratings' July 2009 "Aerospace and Defence MidYear Credit Review and Outlook" report in Related Research left), with most companies having more than adequate funds to meet financial obligations over the next year without any major fund raising efforts. However, given that the sector is a latecycle one, there is a potential for a weakening of liquidity profiles in 2010, particularly among those companies more heavily exposed to the commercial aerospace segments. Liquidity within the EMEA A&D sector has remained relatively strong since the onset of the global recession in H208. This has been the result of the relative insularity of the defence segments to the economic cycles (defence budgets in most countries tend not to be volatile in the short term), the latecycle nature of commercial aerospace, which means that cash flows have not been severely affected (as at endH109), and the conservative...
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