...The ratings reflect Airbus's strong position in the large commercial aircraft (LCA) market, a large order backlog, and a robust liquidity profile. Profitability and cash flow are weak for the ratings, reflecting the costs associated with the introduction and ramp-up of new aircraft, high unit cost of early deliveries, and problems with the company's A400M military transport aircraft. We expect profitability to improve from 2017, driven by production rate increases and cost improvement on key programmes. Through the cycle, we expect Fitch-calculated funds from operations (FFO) and free cash flow (FCF) margins of at least 9% and 3%, respectively, for Airbus. Although Fitch believes that these margins are achievable over the coming three-to-four years failure to demonstrate positive momentum on these two ratios may place pressure on the ratings....
