...The rating affirmation reflects Fitch Ratings' expectation that ABB Ltd's business profile will remain strong in the medium term, backed by strong free cash flow (FCF) generation and healthy liquidity. Fitch forecasts that ABB's leverage metrics will exceed Fitch's negative rating sensitivity for the next two years, driven by weakening profitability and a shareholder-friendly policy. However, Fitch expects strong cash generation to drive funds from operations (FFO) net leverage metrics to below 2.5x through the cycle, which is broadly comparable with `A' rated diversified industrial peers and more in line with ABB's rating. Fitch views ABB's generous shareholder distribution as a key rating constraint, potentially leading to negative rating pressures if it, along with the coronavirus pandemic, further increases leverage and weakens liquidity....
