...Restructuring Ongoing: The Negative Outlook reflects the risk that Finmeccanica SpA's (FM) restructuring measures may take longer than expected in yielding an improvement in the company's FFO and FCF generation, while debt and leverage are high for the ratings. It also reflects that deleveraging may take longer to achieve than envisaged. Fitch Ratings expects to review the ratings again by the end of 2014 with a view to assessing whether progress on margin improvement and deleveraging potential is adequate to maintain the 'BB+' ratings. Financial Performance: Recent operating performance has been fairly poor, with the funds from operations (FFO) margin falling to 5.5% for the last 12 months (LTM) to 31 March 2014, (from 6.1% in 2013) as weakness in the US defence and transportation segments more than offset improvements in helicopters and aeronautics. LTM FCF was materially worse than expected, at negative EUR403m, as a result of a large working-capital outflow stemming from a cancellation...
