...Sector and Sub-Sectors: This report addresses Fitch Ratings` specific credit factors used when analyzing aerospace and defense (A&D) companies globally. The A&D sector includes a wide range of companies that provide a disparate product offering. Companies in the sector have varying characteristics regarding end markets, growth outlook, profit margins and cash generation as well as management track records. Key sub-sectors include large commercial aircraft (LCA), defense and engine manufacturing. Key Factors: The Sector Risk Profile defines and groups companies operating in the sector into a natural rating territory based on Fitch`s view of the inherent risk profile of the industry. Each company`s overall risk profile generally does not stray too far from this rating range. After assessing the Operating Environment, then Management and Corporate Governance, the Navigator examines four Sector-Specific factors for given rating levels. Finally, three Financial Profile factors help capture financial...
